Schroder Investment Fund Company...

Schroder InvestmentFund CompanyProspectus20 January 2020

United Kingdom

(SIFCO)

Schroder Investment Fund Company(SIFCO)

Prospectus

20 January 2020

Schroder Unit Trusts LimitedInternet Site: http://www.schroders.co.uk

Schroder Investment Fund Company Prospectus 5

Important InformationProspectus of Schroder Investment Fund Company

An investment company with variable capital incorporatedwith limited liability and registered in England and Walesunder Regulation 4 of the Open Ended InvestmentCompanies Regulations 2001, as amended or re-enacted fromtime to time.

This document (this Prospectus) constitutes the prospectusfor Schroder Investment Fund Company (the Company),which has been prepared in accordance with the CollectiveInvestment Schemes (COLL) Sourcebook of the FinancialConduct Authority (FCA) made under the Financial Servicesand Markets Act 2000.

This Prospectus is dated, and is valid as at 20 January 2020.

Copies of this Prospectus have been sent to the FCA and theDepositary.

Schroder Unit Trusts Limited, the Authorised CorporateDirector of the Company, is responsible for the informationcontained in this Prospectus. To the best of its knowledgeand belief (having taken all reasonable care to ensure thatsuch is the case), the information in this document does notcontain any untrue or misleading statement or omit anymatters required by The Open-Ended Investment CompaniesRegulations 2001 to be included in it. Schroder Unit TrustsLimited accepts responsibility accordingly.

No person has been authorised by the Company to give anyinformation or make any representations in connection withthe offering of Shares other than those contained in thisProspectus, and, if given or made, such information orrepresentations must not be relied on as having been madeby the Company. The delivery of this Prospectus (whether ornot accompanied by any reports) or the issue of Shares shall

not, under any circumstances, create any implication that theaffairs of the Company have not changed since the datehereof.

The distribution of this Prospectus and the offering of Sharesin certain jurisdictions may be restricted. Persons into whosepossession this Prospectus comes are required by theCompany to inform themselves about and to observe anysuch restrictions. This Prospectus does not constitute an offeror solicitation by anyone in any jurisdiction in which such anoffer or solicitation is not authorised or to any person towhom it is unlawful to make such offer or solicitation.

Shares in the Company are not listed or dealt on anyinvestment exchange.

Potential investors should not treat the contents of thisProspectus as advice relating to legal, taxation, investment orany matters and are recommended to consult their ownprofessional advisers concerning the acquisition, holding ordisposal of Shares.

The provisions of the Company’s Instrument of Incorporationare binding on each of its Shareholders.

This Prospectus has been approved for the purpose ofsection 21 of the Financial Services and Markets Act 2000 bySchroder Unit Trusts Limited.

This Prospectus is based on information, law and practice atthe date hereof. The Company cannot be bound by an out ofdate prospectus when it has issued a new prospectus, andinvestors should check with Schroder Unit Trusts Limited thatthis is the most recently published prospectus.

The Depositary is not responsible for the informationcontained in this Prospectus and accordingly does not acceptany responsibility therefore under the FCA Rules orotherwise.

The following funds are available for investment:

Fund Launch date FCA Product Reference Number

Schroder UK Opportunities Fund 03/11/1989 638218

Schroder UK Dynamic Smaller Companies Fund 03/01/2006 638217

Schroder Sterling Corporate Bond Fund 11/08/1995 638220

Schroder European Recovery Fund 28/03/1989 638216

Schroder Core UK Equity Fund 31/12/2002 638221

Schroder UK Alpha Income Fund 06/05/2005 638223

Schroder Strategic Credit Fund 04/04/2006 638224

Schroder European Alpha Income Fund 02/05/2012 638225

Schroder Global Recovery Fund 30/10/2015 724674

Schroder Multi-Asset Total Return Fund 28/04/2017 774975

Schroder India Equity Fund 07/06/2019 815778

Important: If you are in any doubt about the contents of this Prospectus you should consult your financial adviser.

ContentsImportant Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Section 1 1. The Company and its funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.1. The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.2. The Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.3. Investment Objectives and Policies of the Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.4. Profile of a Typical Investor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.5. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Section 2 2. Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.1. Classes of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.2. Register of Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.3. Buying, Selling and Switching Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.4. Share Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Section 3 3. Charges and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.1. ACD’s Charges and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.2. Depositary’s Charges and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.3. Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.4. Initial Expenses and Promotion Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.5. Allocation of Charges and Expenses Between Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.6. Allocation of Expenses Between Capital and Income . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.7. Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.8. Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Appendix I Risks of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Appendix II The Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Schroder UK Opportunities Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Schroder UK Dynamic Smaller Companies Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Schroder Sterling Corporate Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Schroder European Recovery Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Schroder Core UK Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Schroder UK Alpha Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Schroder Strategic Credit Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Schroder European Alpha Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Schroder Global Recovery Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Schroder Multi-Asset Total Return Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Schroder India Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Appendix III Investment Powers and Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Eligible Markets For Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Appendix IV Management, Distribution and Administration . . . . . . . . . . . . . . . . . . . . . . . . 70

Appendix V General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Appendix VI Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Appendix VII Past performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

6 Schroder Investment Fund Company Prospectus

Appendix VIII Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81



DefinitionsACDSchroder Unit Trusts Limited, the authorised corporatedirector of the Company.

ActFinancial Services and Markets Act 2000, as amended or re-enacted from time to time.

Business DayA day on which the London Stock Exchange is open forbusiness.

ClassAll of the Shares relating to a single Fund or a particular classor classes of Shares relating to a single Fund.

CompanySchroder Investment Fund Company (SIFCo).

CustodianJPMorgan Chase Bank, N.A., the custodian of the SchemeProperty.

DepositaryJ.P. Morgan Europe Limited, the depositary of the Company.

ESMAEuropean Securities and Markets Authority

EUWAEuropean Union (Withdrawal) Act 2018

FCAThe Financial Conduct Authority, or its replacement orsuccessor from time.

FCA RulesThe rules contained in the Collective Investment SchemesSourcebook (COLL), as amended from time to time, publishedby the FCA as part of its handbook of rules made under theAct which shall, for the avoidance of doubt, not includeguidance or evidential requirements contained in the saidSourcebook.

FundA sub-fund of the Company (being part of the schemeproperty which is pooled separately and to which specificassets and liabilities of the Company may be allocated), whichis invested in accordance with the investment objectiveapplicable to such sub-fund.

ISAAn individual savings account under the ISA Regulations.

Instrument of IncorporationThe instrument of incorporation of the Company, asamended from time to time.

Investment Adviser(s) (also referencedas Investment Manager(s))Schroder Investment Management Limited and SchroderInvestment Management (Singapore) Ltd.

LeverageThe use of financial derivative instruments or borrowedcapital, such as margin, to increase the potential return of aninvestment.

Net Asset Value or NAVThe value of the scheme property attributable to a Fund (orthe Company) less the liabilities of the Fund (or theCompany) as calculated in accordance with the Company’sInstrument of Incorporation and the FCA Rules.

Non-Qualified PersonAny person to whom a transfer of Shares (legally orbeneficially) or by whom a holding or acquisition of Shares(legally or beneficially) would or, in the opinion of the ACD,might:-

(A) be in or constitute a breach of any law (or regulation by acompetent authority) of any country or territory by virtueof which the person in question is not qualified to holdsuch Shares; or

(B) require the Company to be registered under any law orregulation whether as an investment fund or otherwise,or cause the Company to be required to apply forregistration, or comply with any registrationrequirements in respect of any of its Shares, whether inthe United States of America or any other jurisdiction; or

(C) cause the Company or its Shareholders some legal,regulatory, taxation, pecuniary or material administrativedisadvantage or other adverse consequence which theCompany or its Shareholders might not otherwise haveincurred or suffered; or

(D) require the ACD to be registered under any law orregulation whether as an investment adviser orotherwise, or cause the ACD to be required to seek anexemption from such registration, whether in the UnitedStates of America or any other jurisdiction.

OEIC RegulationsThe Open-Ended Investment Companies Regulations 2001, asamended or re-enacted from time to time.

Relative VaRA relative VaR approach limits the maximum VaR relative to apre-defined benchmark.


RegistrarSchroder Unit Trusts Limited

RegisterThe register of Shareholders kept on behalf of the Companypursuant to paragraph 1(1) of schedule 3 of the OEICRegulations.

Scheme PropertyThe property of the Company or a Fund, as the context mayrequire, required under the FCA Rules to be given forsafekeeping to the Depositary.

ShareA share in the capital of the Company (including the fractionsof one hundredth of a Share).

ShareholderA holder of Shares.

Transfer AgentDST Financial Services International Limited.

UCITS DirectiveMeans Directive No. 2009/65/EC of the Council and theEuropean Parliament of 13 July 2009.

UCITS Schemean "undertaking for collective investment in transferablesecurities" (a) established in an EEA State, within themeaning of points a) and b) of Article 1(2) of the UCITS IVDirective; or (b) (from the date on which the EUWA come intoeffect) established in an EEA state or the UK, within themeaning of section 236A of the Financial Services andMarkets Act 2000, as amended.

US PersonAny person defined as a US person under Regulation S of theUnited States Securities Act 1933.

Valuation PointThe point on a dealing day whether on a periodic basis or fora particular valuation, at which the ACD carries out avaluation of the Scheme Property for the Company or a Fund(as the case may be) for the purpose of determining the priceat which Shares of a Class may be issued, cancelled, sold orredeemed. The current Valuation Point for each Fund is setout in Appendix II.

VaRValue at Risk, which is a measure of the maximum expectedloss at a given confidence level over the specific time period.


DirectoryAddresses of:

The CompanySCHRODER INVESTMENT FUND COMPANY

Registered Office, Head Office and address for service ofnotices

1 London Wall PlaceEC2Y 5AU London

The Authorised Corporate Director andRegistrarSCHRODER UNIT TRUSTS LIMITED

Registered Office, Head Office and address for service ofnotices

1 London Wall PlaceEC2Y 5AU London

The DepositaryJ.P. MORGAN EUROPE LIMITED

Registered Office

25 Bank StreetCanary WharfE14 5JP London

Principal place of business

ChasesideBH7 7DA Bournemouth

The CustodianJPMORGAN CHASE BANK, N.A.

Registered Office

25 Bank StreetCanary WharfE14 5JP London

Principal place of business

ChasesideBH7 7DA Bournemouth

Transfer AgentDST FINANCIAL SERVICES INTERNATIONAL LIMITED

Registered Office and Administrative Office

DST HouseSt Nicholas LaneBasildonSS15 5FS Essex

AuditorPRICEWATERHOUSECOOPERS LLP

Atria One144 Morrison StreetEdinburgh, EH3 8EX


Section 11. The Company and its funds

1.1. The Company

Schroder Investment Fund Company (the Company) is aninvestment company with variable capital incorporated withlimited liability and registered in England and Wales undernumber IC000030 and authorised by the FCA on 6 May 1999.

Share Capital: The maximum share capital of the Company is£500,000,000,000 and the minimum share capital is £100.Shares have no par value. The share capital of the Companyat all times equals the Net Asset Values of the Funds.

The base currency for the Company is United Kingdom (UK)pounds sterling. The Company is of unlimited duration.

Shares in the Company may be marketed in the UK and inother member states of the European Union (EU) and incountries outside the EU and European Economic Area,subject to the OEIC Regulations, and any regulatoryconstraints in those countries, if the ACD so decides.

Shareholders are not liable for the debts of the Company.Shareholders are not liable to make any further payment tothe Company after they have paid the purchase price of theShares.

1.2. The Funds

The Company has been established as a UCITS Scheme and isstructured as an umbrella company (under the OEICRegulations) meaning that different Funds may beestablished from time to time by the ACD with the agreementof the Depositary and approval of the FCA. This Prospectuswill be revised on the introduction of a new Fund or Class ofShare within a Fund or at any such time where the ACD and/or the Depositary deem it necessary.

The Funds are operated separately and the assets of eachFund are managed in accordance with the investmentobjective and policy applicable to that Fund.

Full details of each Fund are set out in Appendix II.

1.3. Investment Objectives and Policies of the Funds

The investment objective and policy of each Fund is set out inAppendix II and details of eligible security and derivativemarkets on which the Funds may invest are detailed inAppendix III.

The assets of each Fund are treated as separate from thoseof every other Fund and will be invested with the aim ofachieving the investment objective and in accordance withthe policy of that Fund. They must also be invested so as tocomply with the investment and borrowing powers andrestrictions set out in the FCA Rules, the Instrument ofIncorporation of the Company and this Prospectus.

The Company is a UCITS Scheme. A summary of theinvestment powers and restrictions applicable to the Funds isset out in Appendix III.

1.4. Profile of a Typical Investor

The profile of a typical investor for each Fund is set out inAppendix II. Investors must be prepared to acceptfluctuations in the value of capital including capital loss andaccept the risks of investing in equity or bond markets.

Different Classes of Share may be issued in respect of eachFund. The Classes currently available in each Fund are set outin Appendix II.

1.5. Risk Factors

The risks of investment are set out in Appendix I.


Section 22. Shares

2.1. Classes of Shares

Different Classes of Share may be issued in respect of eachFund. The Classes currently available in each Fund are set outin Appendix II.

Holders of income Shares are entitled to be paid the incomeattributable to such Shares in respect of each annual, interimor quarterly accounting periods, as applicable for the relevantFund.

Holders of accumulation Shares are not entitled to be paidthe income attributable to such Shares, but that income isautomatically added to (and retained as part of) the capitalassets of the relevant Fund at the end of each annualaccounting period. The price of an accumulation Shareincreases to reflect accrued income.

Where a Fund has more than one Class, each Class mayattract different charges and expenses and so monies may bededucted from the Classes in unequal proportions. In thesecircumstances, the proportionate interests of the Classeswithin a Fund will be adjusted accordingly.

The price of Shares is expressed in pounds sterling. Sharesthemselves have no nominal value.

The Instrument of Incorporation does not provide for bearerShares and consequently none will be issued.

Currency Share Classes

Where a class is denominated in a currency which is not theBase Currency, distributions paid on Shares of that classshall, in accordance with the FCA Rules, be in the currency ofthat class. Where it is necessary to convert one currency intoanother, conversions shall be made at a rate of exchangedecided by the ACD as being a rate that is not likely to resultin any material prejudice to the interests of Shareholders orpotential Shareholders.

Currency Hedged Share Classes

GBP hedged Share classes may be available for some Funds.Hedged Share classes allow the ACD to use currency hedgingtransactions to seek to minimise the effect of exchange ratefluctuations between the Base Currency and the PortfolioCurrency of a Fund. Currency hedging transactions includeentering into over the counter currency forward contractsand foreign exchange agreements.

Where undertaken, the effects of hedging will be reflected inthe net asset value and, therefore, in the performance of therelevant hedged Share class. The cost and expensesassociated with the hedging transactions in respect of thehedged Share class(es) and any benefits of the hedgingtransactions will accrue to Shareholders in that hedged Shareclass only.

The ACD will aim to hedge the currency exposure of the netasset value attributable to a hedged Share class, however,the hedge may not always be at 100%. This is to avoid thetransaction costs of making small and frequent adjustingtransactions. The ACD will review the relevant hedgingpositions daily and, if appropriate, adjust the hedge to reflectany change in currency exposure and the flow of Shareholderissues and redemptions of Shares.

The nature of the risks that hedging transactions may involveare set out in the Risk Section of this Prospectus (Appendix I).

Hedged Share classes that are currently available are statedin Appendix II.

Share Distributions

With effect from 6th April 2017, all Shares are gross payingshares. The income allocated to such Shares is periodicallydistributed (Income Shares) or added to capital(Accumulation Shares) without deduction of any income tax. .

D Shares

Before investment into D Class Income Shares and D ClassAccumulation Shares can be accepted by the ACD, a separateinvestment agreement must be in place between thedistributor and the ACD specific to investment in these shareclasses.

L Shares

The target market for L Shares is large distributor clients ofthe ACD. Investment into the L Shares is at the ACD’sdiscretion. Before the ACD can accept a subscription into theL Shares, a separate legal agreement must be in placebetween the distributor and ACD containing terms specific toinvestment in the L Shares.

Q Shares

Investment into the Q Shares is at the ACD’s discretion.Before the ACD can accept a subscription into the Q Shares aseparate legal agreement must be in place between theinvestor/distributor and ACD containing terms specific toinvestment in the Q Shares.

S Shares

S Class Income and S Class Accumulation Shares are availableat the ACD’s discretion to certain clients of the SchroderGroup wealth management business. Before the ACD canaccept a subscription into S Shares, a legal agreement mustbe in place between the investor and the relevant entitywithin the Schroder Group wealth management businesscontaining terms specific to investment in the S Shares.

In the event that a Shareholder of the S Share ceases to be aclient of the Schroder Group wealth management business,the Shareholder will cease to be eligible to hold S Shares andthe ACD will compulsorily switch the Shareholder into themost appropriate Income and/or Accumulation (asappropriate) Share class of the Fund. This means that theswitch of S Shares will be automatic without the need forShareholders to submit a switching request to the ACD.Instead, by subscribing for S Shares, Shareholders irrevocablypermit the ACD to switch S Shares on their behalf should theycease to be eligible to invest in the S Shares. Applications forsubscriptions into S class income and/or S class accumulationShares are accepted at the ACD’s discretion.

X Shares

A feature of the X Shares is that they have an alternativecharging structure whereby Shareholders who are a client ofSchroders are charged the management fees directly by


Schroders pursuant to a management fee agreement. Nomanagement fees are therefore payable in respect of XShares out of the net assets of the Fund.

2.2. Register of Shareholders

All Classes of Share are in registered, uncertificated form.Certificates will not be issued to Shareholders. The Register isavailable for inspection by Shareholders at the followingaddress: DST House, St Nicholas Lane, Basildon, Essex SS155FS. The register can be inspected during normal businesshours. The Register shall be prima facie evidence as to thepersons respectively entitled to the Shares entered in theRegister. No notice of any trust, express, implied orconstructive, shall be entered on the Register in respect ofany Share and the ACD and the Registrar shall not be boundby any such notice.

2.3. Buying, Selling and Switching Shares

2.3.1. GeneralThe ACD or the Company will receive requests for the issue,redemption and switching of shares between 9.00 a.m. and5.30 p.m. on each Business Day. The time and price at whicha deal takes place depends on the requirements of COLLaffecting the pricing of Shares.

Instructions accepted by the ACD before the valuation pointas specified under “Share prices” will normally be executedat the relevant price per Share, calculated on that DealingDay.

With the consent of the Depositary, the dealing office of theACD may be open on days other than Business Days. Onthese other days, restrictions may be added to the openinghours and the types of business accepted. The Shares in eachFund are not listed or dealt in on any investment exchange.

2.3.2. Money Laundering PreventionAs a result of legislation in force in the UK to prevent moneylaundering, the ACD is responsible for compliance with anti-money laundering regulations. In order to implement theseprocedures, in certain circumstances, Shareholders may beasked to provide some proof of identity when buying andselling Shares. For each person who signs the applicationform the ACD will be authorised under the Data ProtectionAct to use electronic means to access information relating tothe investor’s proof of identity and permanent residentialaddress.

Until satisfactory proof of identity is provided, the ACDreserves the right to refuse to issue Shares, pay proceeds of aredemption of Shares or pay income on Shares to theShareholder.

2.3.3. Minimum HoldingsThese are set out in Appendix II. The ACD reserves the rightto reduce or waive the minimum investment levels.

If following a redemption, switch or transfer a holding in anyClass of Share should fall below the minimum holding forthat Class, as detailed in Appendix II, the ACD has thediscretion to effect a redemption of that Shareholder’s entireholding in that Class of Share. The ACD may use thisdiscretion at any time. Failure not to do so immediately aftersuch redemption, switch or transfer does not remove thisright.

2.3.4. Deferred Sale of SharesFor each Fund, the ACD may decide to defer the sale ofShares on any Dealing Day to the next Dealing Day where thesale of Shares by a Shareholder or Shareholders exceeds 10%of the Fund’s NAV. The deferral will enable the ACD tomanage the orderly sale of a Fund’s property to raiseproceeds to meet the sale of Shares and in doing so will aimto protect the interests of existing Shareholders. AllShareholders who have sought to sell their Shares on anyDealing Day at which the sale of Shares has been deferredwill be treated in the same way and the ACD will ensure thatall orders relating to an earlier Dealing Day are completedbefore those relating to a later Dealing Day are considered.

2.3.5. Buying SharesShares may be purchased by sending a completedapplication form to the ACD or by telephoning 0800 718 788(Dealing). Please note that telephone calls may be recorded.In addition, the ACD may from time to time makearrangements to allow Shares to be bought online orthrough other communication media. The ACD may accepttransfer of title by electronic communication.

A contract note giving details of the Shares purchased will beissued no later than the next Business Day after the DealingDay on which an application to purchase Shares is valued bythe ACD.

The ACD will not accept an application for Shares to the valueof less than the minimum subscription amount as detailed inAppendix II. If a holding falls below the minimum holdingthen the ACD reserves the right to redeem the Shares onbehalf of the Shareholder.

Entitlement to Shares will be entered on the Registerimmediately after the later of:-

(A) the time when the purchaser has supplied the ACD withsuch information about the proposed holder as willenable the Registrar to complete the entry on theRegister;

(B) receipt of payment; and

(C) the expiry of any period during which the purchaser hasa right to cancel the agreement for the purchase of theShares pursuant to rules made by FCA under the Act.

The ACD reserves the right to reject on reasonable groundsany application for Shares in whole or in part in which casethe application money, or any balance, will be returned bypost at the risk of the applicant.

The Schroder UK Dynamic Smaller Companies Fund may limitthe issue of Shares in the Fund (Limited Issue) as detailed inAppendix II.

Any subscription monies remaining after a whole numberof Shares have been purchased will be used to purchasefractions of whole Shares (known as “smallerdenomination Shares”). A smaller denomination Share isequivalent to one-hundredth of a whole Share.

The ACD will not pay interest on any monies held by itpending investment in Shares.

The Company is subject to the Proceeds of Crime Act and theACD may at its discretion require verification of identity fromany person applying for Shares including, without limitation,any applicant who tenders payment by way of cheque or


banker’s draft on an account in the name of a person orpersons other than the applicant; or appears to the ACD tobe acting on behalf of some other person.

Default by a Purchaser

Default by a purchaser in payment of any moneys under thepurchaser's application will entitle the Depositary to cancelany rights of the purchaser in the Shares. In the case ofdefault, the ACD will hold the purchaser liable, or jointly andseverally liable with any agent of the purchaser, for any losssustained by the ACD as a consequence of a fall in the priceof Shares.

Market Timing Policy, Late Trading Policy and Fair ValuePricing

The ACD does not knowingly allow investments which areassociated with market timing activities, as these mayadversely affect the interests of all Shareholders.

In general, market timing refers to the investment behaviourof a person or group of persons buying, selling or switchingShares on the basis of predetermined market indicators.Market timing may also be characterised by transactions thatseem to follow a timing pattern or by frequent or largetransactions in Shares.

In practice, the underlying property of a Fund which investsin non-European markets or other collective investmentschemes is usually valued on the basis of the last availableprice as at the time when the Net Asset Value of the propertyin the Fund in calculated. The time difference between theclose of the markets in which the Fund invests, and the pointof valuation, can be significant. For example, in the case of aUS traded security, the last available price may be as much as14 hours old. Market developments which could affect thevalue of these securities can occur between the close of themarkets and the point of valuation, will therefore notnormally be reflected in the Net Asset Value per Share of therelevant Fund.

Accordingly, the ACD may, whenever it is deemed it to beappropriate and in the interests of Shareholders, implementone, or both of the following measures:

- to reject any application for switching and/or subscriptionof Shares from Shareholders or potential shareholderswhom it considers to be associated with market timingactivity. In such circumstances the ACD may combineShares which are under common ownership or control forthe purposes of ascertaining whether Shareholders can bedeemed to be involved in such activities; and

- where a Fund is invested in markets which are closed forbusiness at the time a Fund is valued, allow for the NetAsset Value per Share to be adjusted to reflect moreaccurately the fair value of the Fund’s underlying propertyat the point of valuation during periods of market volatility(fair value pricing)..

The ACD uses an independent agent to provide fair valuationanalysis. The adjustment of the Net Asset Value per Share ofa Fund so as to reflect the fair value of the portfolio as at thepoint of valuation is an automated process. Adjustmentfactors are applied daily at an individual asset level toindependently sourced market prices. The adjustmentprocess covers all equity markets that are closed at therelevant Valuation Point and all funds that have exposure tothese markets are fair value priced. In applying fair valuepricing, the ACD is seeking to ensure that consistent pricesare applied across all relevant funds. Fixed income and otherasset classes are currently not subject to fair value pricing.

Late Trading is not permitted. “Late Trading” is defined asthe acceptance of a subscription, redemption or switch orderreceived after the Fund’s applicable valuation point for thatDealing Day. As such, orders will not be accepted using theprice established at the valuation point for that Dealing Day iforders are received after that time. Late Trading will notinclude a situation in which the ACD is satisfied that orderswhich are received after the valuation point have been madeby investors before then (e. g. where the transmission of anorder has been delayed for technical reasons).

Where an adjustment is made as described above, it will beapplied consistently to all classes of Shares within the sameFund.

2.3.6. Selling SharesAt any time during a Dealing Day when the ACD is willing tosell Shares it must also be prepared to buy back Shares. TheACD may refuse to buy back a certain number of Shares if theredemption will mean the Shareholder is left holding Shareswith a value of less than the minimum initial subscription.

Requests to sell Shares in the Funds may be made by sendingclear written instructions to the ACD or by telephoning on0800 718 788 (Dealing). Please note that telephone calls maybe recorded. In addition, the ACD may from time to timemake arrangements to allow Shares to be sold online orthrough other communication media.

The ACD may accept transfer of title by electroniccommunication.

A contract note giving details of the number and price of theShares sold back to the ACD will be sent to Shareholders nolater than the next Business Day after the Shares werevalued. In the event that the ACD requires a signed form ofrenunciation, e.g. in respect of joint Shareholders, corporateShareholders or redemptions dealt through an agent, a formof renunciation will be attached.

Requests to sell Shares are irrevocable. Significant delays inpayment of the proceeds of sale can occur in cases where aholder has not advised the Registrar in advance of a changeof address or bank account details.

Instances Where ACD Does Not Have To Accept a Requestto Sell Shares

The ACD will not be obliged to purchase Shares in thefollowing circumstances:

(A) if the number or value of Shares sought to be sold is:-

(1) less than the entirety of the Shareholder’s holding ofShares of the Class concerned; and

(2) less than any number or value stated in Appendix IIas the minimum number or value of Shares that maybe sold in that Class of Share of the Fund concerned;

(B) if the number or value of the Shares sought to be soldwould result in the holder holding less than any numberor value stated in Appendix II as the minimum numberor value of Shares of the Class concerned that may beheld;

(C) if the Company ensures that the Shareholder is able tosell his Shares on an investment exchange at a price notsignificantly different from the price at which they wouldotherwise have been purchased by the ACD; or

(D) where Shares are sold in return for property transferredor sold (in specie cancellation). This is outlined below.


Payment on Selling Shares

Once a request to sell Shares has been agreed, the proceedsof the sale (less, where applicable, the cost of remitting thesum abroad) will normally be paid to the selling Shareholderby the close of business on the fourth Business Day after thelater of:-

(A) the valuation point immediately following receipt by theACD of the request to sell, or

(B) the time when the ACD has all duly executed instrumentsand authorisations as effect (or enable the ACD to effect)the transfer of title to the Shares.

Sale Proceeds

The amount to be paid by the ACD as the proceeds of a saleof Shares shall not be less than the price of a Share of therelevant Class to be notified to the Depositary in respect ofthe next valuation point less any redemption chargepermitted.

2.3.7. Switching SharesShareholders are entitled to switch some or all of their Sharesof one Class (Original Shares) for Shares of another Classwithin the same Fund or for Shares of any Class within adifferent Fund (New Shares). A switch involves the sale of theOriginal Shares and the purchase of the New Shares. Thenumber of New Shares issued will be determined byreference to the respective prices of New Shares and OriginalShares at the valuation point applicable when the OriginalShares are redeemed and the New Shares are issued.Switching instructions will be irrevocable and the Shareholderwill have no right to cancel the transaction.

Requests to switch Shares may be made by sending acompleted application form to the ACD. In addition, the ACDmay from time to time make arrangements to allow Sharesto be switched online or through other communicationmedia. The ACD may accept transfer of title by electroniccommunication.

The ACD may at its discretion make a charge on the switchingof Shares. The charge will not exceed an amount equal to thethen prevailing Initial Charge (if any) for the New Shares. Theswitching charge is payable to the ACD. No switching chargeis payable on a switch from one Class in a Fund to anotherClass in the same Fund. The ACD may adjust the number ofNew Shares issued to reflect the imposition of any switchingcharge and any other charges or levies in respect of the issueor sale of the New Shares or the redemption or cancellationof the Original Shares as may be permitted pursuant to theFCA Rules.

If a switch would result in the Shareholder holding a numberof Original Shares or New Shares of a value which is less thanthe minimum holding in the Fund concerned, the ACD may, ifit thinks fit, convert the whole of the Shareholder’s holding ofOriginal Shares to New Shares or refuse to effect any switchof the Original Shares. No switch will be made during anyperiod when the right of Shareholders to require theredemption of their Shares is suspended. The generalprovisions on procedures relating to redemption will applyequally to a switch.

The ACD will not charge when Shareholders switch Shares inone Fund for Shares in any other Fund (or who switchesbetween Classes of Shares). However, switches of Shares inone Fund for Shares in any other Fund may be subject todilution adjustment both on the sale and purchase of thoseShares.

A Shareholder who switches Shares in one Fund for Shares inany other Fund (or who switches between Classes of Shares)will not be given a right by law to withdraw from or cancelthe transaction.

Shareholders subject to UK tax should note that a switch ofShares within the same Fund should not be treated as adisposal for the purposes of capital gains taxation. However,switches of Shares within the same Fund will be chargeable ifthey involve a switch from a hedged to an unhedged class, orvice versa or a switch between classes hedged to differentcurrencies. Shareholders subject to UK tax should note that aswitch of Shares between different Funds is treated as adisposal for the purposes of capital gains taxation.Shareholders who switch Shares of one Class for Shares ofany other Class, or switch Shares of one Fund for shares ofany other Fund, will not be given a right by law to withdrawfrom or cancel the transaction.

2.3.8. Issue of Shares in Exchange for In Specie AssetsThe ACD may arrange for the Company to issue Shares inexchange for assets other than money, but will only do sowhere the Depositary is satisfied that the Company’sacquiring of those assets in exchange for the Sharesconcerned is not likely to result in any material prejudice tothe interests of Shareholders or potential Shareholders. TheACD will ensure that the beneficial interest in the assets istransferred to the Company with effect from the issue of theShares.

The ACD will not issue Shares in any Fund in exchange forassets the holding of which would be inconsistent with theinvestment objective of that Fund.

2.3.9. In Specie CancellationIf a Shareholder requests the redemption or cancellation ofShares, the ACD may, if it considers the deal substantial inrelation to the total size of the Fund concerned, arrange forthe Company to cancel Shares and transfer an appropriateamount of the Scheme Property to the Shareholder insteadof paying the price of the Shares in cash, or, if required by theShareholder, pay the net proceeds of the sale of the relevantScheme Property to the Shareholder. A deal involving Sharesrepresenting 5% or more in value of a Fund will normally beconsidered substantial, although the ACD may in itsdiscretion agree an in specie cancellation with a Shareholderwhose Shares represent less than 5% in value of the Fundconcerned.

Before the proceeds of cancellation of the Shares becomepayable, the ACD will give written notice to the Shareholderthat Scheme Property will be transferred to that Shareholder.

The ACD will select the property to be transferred inconsultation with the Depositary. They must ensure that theselection is made with a view to achieving no greateradvantage or disadvantage to the redeeming Shareholderthan to continuing Shareholders.

2.3.10. Suspension of Dealing in SharesThe buying, selling and switching of Shares of each Fund orShares of all Funds of the Company may at any time betemporarily suspended by the ACD, with the prior agreementof the Depositary or if the Depositary so requires, if the ACDor the Depositary, as appropriate, is of the opinion that dueto exceptional circumstances there is good and sufficientreason to do so having regard to the interests ofShareholders in the Company and/or the relevant Fund. Suchreasons may include the closure or suspension of dealing ona relevant stock exchange, or the inability of the ACD to


ascertain properly the value of any or all of the assets orrealise any material part of the assets of a Fund or the valueof redemption requests received in respect of any BusinessDay is deemed, in the ACD’s discretion with the prioragreement of the Depositary, to be exceptional in relation tothe value of the relevant Fund.

If the redemption of Shares is suspended, the obligationscontained in Chapter 6 of the FCA Rules relating to thecreation, cancellation, issue and redemption of Shares willcease to apply and the obligations relating to the valuation ofShares will be complied with only to the extent practicable inlight of the suspension.

Appropriate notification of suspension will be given toShareholders as soon as practicable after suspensioncommences. In accordance with the FCA Rules, the FCA willalso be immediately informed of the suspension and thereasons for it. The ACD and the Depositary will review thesuspension at least every 28 days and will inform the FCA ofthe results. The suspension will continue only for as long as itis justified having regard to the interests of the Shareholders.

Where the ACD agrees during suspension to deal in Shares,all deals accepted during, and outstanding prior to, thesuspension will be undertaken at a price calculated at thefirst relevant Valuation Point after the restart of dealings inShares.

2.3.11. ACD Dealing as PrincipalThe ACD will, on the completion of the valuation of eachFund, advise the Depositary of the issue and cancellationprices of Shares of that Fund. These are the prices which theACD has to pay to the Depositary for the issue of Shares orwhich the ACD will receive from the Depositary upon thecancellation of Shares. The ACD deals as principal in theseShares and may hold Shares for its own account. However,Shares will generally only be held by the ACD to facilitateShare orders and will not be held for speculative purposes.Any profits or losses arising from such transactions shallaccrue to the ACD and not to the Fund. The ACD is under noobligation to account to the Depositary, or to Shareholdersfor any profit it makes on the issue or re-issue of Shares orcancellation of Shares which it has redeemed.

2.4. Share Prices

2.4.1. Pricing BasisThe Company deals on a forward pricing basis. A forwardprice is calculated at the next valuation of the SchemeProperty after the purchase, sale or switch of Shares isagreed.

Shares are priced on a single, mid-market basis in accordancewith the FCA Rules.

2.4.2. Calculation of PricesValuations

The price of a Share is calculated by reference to the NetAsset Value of the Fund to which it relates and the basis ofcalculation of Net Asset Value is summarised below. The ACDwill carry out a valuation of each Fund with the frequency andat the times detailed in Appendix II.

The ACD reserves the right, subject to prior approval fromthe Depositary, to:-

(A) value the property of all or any of the Funds at analternative time on any day on which the London StockExchange reduces the length of its mandatory quoteperiod; and

(B) suspend valuation of the property of a Fund at any timewhen the buying, selling and exchanging of Shares issuspended.

Investors should bear in mind that, on purchase, anyapplicable ACD’s Initial Charge is added to the price of Sharesand, on a sale, any applicable redemption charge will bededucted from the proceeds of the sale. In addition, for bothpurchases and sales by investors, there may be a dilutionadjustment (detailed in section entitled “DilutionAdjustment”).

Special Valuations

The ACD may carry out an additional valuation of theproperty of a Fund at any time during a Business Day if it isdesirable to do so and may carry out special valuations in thefollowing circumstances:-

(A) where necessary for the purposes of effecting a schemeof reconstruction or amalgamation; or

(B) on the day on which the annual or half-yearly accountingperiod ends.

2.4.3. Calculation of Net Asset ValueThe value of the property of each individual Fund shall be thevalue of the relevant assets less the value of the relevantliabilities determined in accordance with the Company’sInstrument of Incorporation. A summary of the provisionsfollows.

(A) All the Scheme Property (including receivables) is to beincluded, subject to the following provisions.

(B) Property which is not cash (or other assets dealt with inparagraph (3) below) shall be valued as follows and theprices used shall (subject as follows) be the most recentprices which it is practicable to obtain:

(1) units or shares in a collective investment scheme:-

(I) if a single price for buying and selling units orshares is quoted, at that price; or

(II) if separate buying and selling prices are quoted,at the average of the two prices provided thebuying price has been reduced by any initialcharge included therein and the selling price hasbeen increased by any exit or redemptioncharge attributable thereto; or

(III) if, in the opinion of the ACD, the price obtainedis unreliable or if no recent traded price isavailable or if no recent price exists, at a valuewhich in the opinion of the ACD is fair andreasonable;

(2) exchange-traded derivative contracts:

(I) if a single price for buying and selling theexchange traded derivative is quoted, at thatprice; or

(II) if separate buying and selling prices are quoted,at the average of the two prices;


(3) over-the-counter derivative contracts shall be valuedin accordance with the method of valuation as shallhave been agreed between the ACD and theDepositary;

(4) any other investment:

(I) if a single price for buying and selling thesecurity is quoted, at that price; or

(II) if separate buying and selling prices are quoted,at the average of the two prices; or

(III) if, in the opinion of the ACD, the price obtainedis unreliable or if no recent traded price isavailable or if the most recent price availabledoes not reflect the ACD’s best estimate of thevalue, at a value which in the opinion of the ACDis fair and reasonable; and

(5) property other than that described in (1), (2), (3) and(4) above: at a value which, in the opinion of theACD, represents a fair and reasonable mid-marketprice.

(C) Cash and amounts held in current, deposit and marginaccounts and in other time-related deposits shall bevalued at their nominal values.

(D) In determining the value of the Scheme Property, allinstructions given to issue or cancel Shares shall beassumed (unless the contrary is shown) to have beencarried out and any cash payments made or received andall consequential action required by the Regulations orthe Instrument of Incorporation shall be assumed(unless the contrary has been shown) to have beentaken.

(E) Subject to paragraphs (F) and (G) below, agreements forthe unconditional sale or purchase of property which arein existence but uncompleted, shall be assumed to havebeen completed and all consequential action required tohave been taken. Such unconditional agreements neednot be taken into account if made shortly before thevaluation takes place and, in the opinion of the ACD, theiromission will not materially affect the final net assetamount.

(F) Futures or contracts for differences which are not yetdue to be performed and unexpired and unexercisedwritten or purchased options shall not be included underparagraph (E).

(G) All agreements are to be included under paragraph (E)which are, or ought reasonably to have been, known tothe person valuing the property assuming that all otherpersons in the ACD’s employment take all reasonablesteps to inform it immediately of the making of anyagreement.

(H) Deduct an estimated amount for the anticipated taxliabilities (on unrealised capital gains where the liabilitieshave accrued and are payable out of the property of aFund; on realised capital gains in respect of thepreviously completed and current accounting periods;and on income where liabilities have accrued), including(as applicable and without limitation) capital gains tax,income tax, corporation tax and advance corporation tax,value added tax, stamp duty and stamp duty reserve tax.

(I) Deduct an estimated amount for any liabilities payableout of the Scheme Property and any tax thereon, treatingperiodic items as accruing from day to day.

(J) Deduct the principal amount of any outstandingborrowings whenever repayable and any accrued butunpaid interest on borrowings.

(K) Add an estimated amount for accrued claims for tax ofwhatever nature which may be recoverable.

(L) Add any other credits or amounts due to be paid into theScheme Property.

(M) Add a sum representing any interest or any incomeaccrued due or deemed to have accrued but not receivedand any stamp duty reserve tax provision anticipated tobe received.

(N) Currencies or values in currencies other than the basecurrency shall be converted at the relevant valuationpoint at a rate of exchange that is not likely to result inany material prejudice to the interests of Shareholders orpotential Shareholders.

When an investment is fair valued, there is no guarantee thatthe investment will be sold at the price at which a Fund iscarrying the investment. The ACD monitors domestic andforeign markets and news information for any developingevents that may have an impact on the valuation of theFund’s investments.

Where the ACD believes that a reliable share price cannot beestablished as at the valuation point, dealing in the relevantFund may be suspended.

2.4.4. Publication of PricesDetails for each Fund are set out in Appendix II.

Prices for each Fund are published on Schroders’ website:www.schroders.co.uk. Shareholders can obtain up-to-dateFund prices free of charge by telephoning 0800 718 788.

The ACD is not responsible for any errors in publication or forthe non-publication of prices. The ACD issues and redeemsShares on a forward pricing basis, not on the basis of thepublished prices.

2.4.5. Dilution AdjustmentThe actual cost of purchasing or selling Shares in a Fund maybe higher or lower than the mid-market value used incalculating the Share price. These costs may include dealingcharges, commissions and the effects of dealing at pricesother than the mid-market price. The effects of transactioncharges and the dealing spread may have a materiallydisadvantageous effect on the Shareholders’ interest in aFund.

To prevent this effect, known as “dilution”, the ACD maycharge a dilution adjustment when there are net inflows intoa Fund or net outflows from a Fund, so that the price of aShare is above or below that which would have resulted froma mid-market valuation. It is not, however, possible to predictaccurately whether dilution will occur at any point in time.Consequently it is not possible to accurately predict howfrequently the ACD will need to make such a dilutionadjustment. The charging of a dilution adjustment mayreduce the redemption price or increase the purchase priceof Shares. The imposition of a dilution adjustment mayreduce the redemption price or increase the purchase priceof Shares.

The imposition of a dilution adjustment will depend on thevolume of sales or redemptions of Shares. The ACD maymake a dilution adjustment:


(A) if net sales or redemptions are over 1.0% of the Fund’sNet Asset Value; or

(B) on a Fund experiencing large levels of net sales relativeto its size: or

(C) where a Fund is in continual decline (i.e. is suffering a netoutflow of investments); or

(D) in any other case where the ACD believes that it is in theinterest of Shareholders to impose a dilution adjustment.

The dilution adjustment for each Fund will be calculated byreference to the costs of dealing in the underlyinginvestments of that Fund, including any dealing spreads,commission and transfer taxes but excluding any UK StampDuty payable on purchases of underlying securities. The costof dealing in underlying investments can vary over time andas a result the amount of dilution adjustment will also varyover time. The price of each Class of Share in a Fund will becalculated separately but any dilution adjustment will affectthe price of Shares of each Class of Share in each Fundequally.

On the occasions when the dilution adjustment is not madethere may be an adverse impact on the total assets of theFund.

For illustrative purposes, the table below sets out how manytimes the ACD applied a dilution adjustment on the dealing inShares of each Fund over the 12 month period from 1 January2018 to 31 December 2018. However, such historicalinformation does not constitute a projection. As dilution isrelated to the inflows and outflows of money from the Fund itis not possible to accurately predict whether dilution willoccur at any future point in time. Consequently it is also notpossible to accurately predict how frequently the ACD willneed to make such a dilution adjustment. In the usual courseof business, the application of a dilution adjustment will betriggered mechanically and on a consistent basis.

Number of times dilutionadjustment applied in 2018

Schroder UK OpportunitiesFund

2

Schroder UK DynamicSmaller Companies Fund

0

Schroder Sterling CorporateBond Fund

0

Schroder European RecoveryFund

1

Schroder Core UK EquityFund

3

Schroder UK Alpha IncomeFund

2

Schroder Strategic CreditFund

2

Schroder European AlphaIncome Fund

4

Schroder Global RecoveryFund

12

Schroder Multi-Asset TotalReturn Fund

4

Schroder India Equity Fund N/a

Because the dilution adjustment for each Fund will becalculated by reference to the costs of dealing in theunderlying investments of that Fund, including any dealingspreads, and these can vary with market conditions, thismeans that the amount of the dilution adjustment can varyover time.

Estimated Dilution Adjustments

Estimates of the dilution adjustment calculated on securitiesheld in each Fund, dealing expenses incurred and marketconditions at the time of this Prospectus are set out below:

Estimated DilutionAdjustmentapplicable toredemptions

Estimated DilutionAdjustmentapplicable topurchases

Schroder UKOpportunitiesFund

0.14% 0.56%

Schroder UKDynamic SmallerCompanies Fund

1.34% 1.54%

Schroder SterlingCorporate BondFund

0.37% 0.37%

SchroderEuropeanRecovery Fund

0.10% 0.20%

Schroder Core UKEquity Fund

0.08% 0.60%

Schroder UK AlphaIncome Fund

0.09% 0.56%

Schroder StrategicCredit Fund

0.31% 0.31%

SchroderEuropean AlphaIncome Fund

0.10% 0.21%

Schroder GlobalRecovery Fund

0.14% 0.27%

Schroder Multi-Asset Total ReturnFund

0.01% 0.01%

Schroder IndiaEquity Fund

0.25% 0.25%

These rates are indicative and are only intended to provide aguide to Shareholders and potential Shareholders on thepossible rate at which the dilution adjustment may becharged. The ACD will review dilution adjustment charges ona quarterly basis.


Section 33. Charges and Expenses

3.1. ACD’s Charges and Expenses

The ACD reserves the right to review levels of charges.Notice of any increase from the current levels will bedealt with in accordance with the FCA Rules.

Initial Charge

The ACD does not currently apply an initial charge (InitialCharge) on a sale of Shares. However, the ACD reserves theright to make such a charge which would be calculated onthe basis of such percentage of the Shareholder’s investment(plus value added tax if any). Any Initial Charge will beapplied in accordance with COBS 6.1 of the FCA Rules. Noticeof the introduction of an Initial Charge will be dealt with inaccordance with the FCA Rules.

Redemption Charge

The ACD currently makes no charge on the cancellation orredemption of Shares. However, the ACD reserves the rightto charge up to 5% on the sale of Shares that have been heldby the selling Shareholder for less than 1 year. The chargewill be subsequently reduced by 1% for each complete yearthat the Shares have been held. Notice of the introduction ofany such charge will be dealt with in accordance with the FCARules. Where a Shareholder has acquired Shares at differenttimes and seeks to redeem or cancel Shares, he/she will betreated, for the purposes of any redemption charge applied,as cancelling or redeeming Shares in the order in which theywere acquired.

If redemption charges are introduced, and then such chargesare changed, historical rates will be available from the ACDon request.

Annual Management Charge

The ACD is entitled to make a periodic annual managementcharge (the Annual Management Charge) (plus value addedtax if any) calculated at an annual percentage rate basedupon the value of the property of each Fund. The actualamount applicable to each Share Class of each Fund is set outin Appendix II.

The Annual Management Charge shall accrue daily and willbe determined by reference to the NAV of each Fund on eachBusiness Day and shall be deducted and paid at the end ofeach month. The Annual Management Charge will be takenfrom either the capital or income of the Fund, as detailed inAppendix II.

Those Funds that have the Annual Management Chargededucted from capital may accordingly have their capitalgrowth constrained.

Where a Fund invests in collective investment schemes, suchunderlying investments will incur management fees andexpenses including an annual management charge. Certainunderlying funds may also charge a initial charge and/orperformance fees.

Administration Charge

The ACD makes a charge of up to 0.15% per annum of theNet Asset Value of each Fund for its administration servicesincluding the costs of registrar and transfer agency servicesprovided by International Financial Data Services Limited.

The Administration Charge is calculated and accrued daily onthe Net Asset Value of each Fund. The Administration Chargeis payable on, or as soon as is practicable after, the lastBusiness Day in that calendar month. All or part of theadministration charge may be waived at the ACD’s discretion.

As the Administration Charge is a fixed percentage of the NetAsset Value of a Fund it will not vary with the cost ofproviding the relevant services. As such the ACD could makea profit (or loss) on the provision of those services, which willfluctuate over time on a Fund by Fund basis.

3.2. Depositary’s Charges and Expenses

The Depositary’s remuneration, which is payable out of theassets of the Company, is a periodic charge at such annualpercentage of the value of the property of the Company as isset out in the table below, with the property of the Companybeing valued and such remuneration accruing and being paidon the same basis as the ACD’s periodic charge. Currently,the ACD and the Depositary have agreed that theDepositary’s remuneration in respect of the Company shallbe calculated on a sliding scale as follows:

Value of Scheme Property Fee

On the first £500 million 0.009%

On the next £500 million 0.005%

Excess above £1 billion 0.001%

The Depositary is also entitled to receive out of the SchemeProperty remuneration for performing or arranging for theperformance of the functions conferred on the Depositary bythe Instrument of Incorporation or the FCA Rules. TheDepositary’s remuneration under this paragraph shall accruewhen the relevant transaction or other dealing is effectedand shall be paid in arrears on the next following date onwhich payment of the Depositary’s periodic charge is to bemade or as soon as practicable thereafter. Currently theDepositary does not receive any remuneration under thisparagraph.

The Depositary is permitted to increase its remunerationsubject to the agreement of the ACD. If the charge materiallyincreases the payment out of the Company, written noticewill be given in the same manner as for an increase to theACD’s Initial Charge detailed above.

Depositary Expenses

In addition to the remuneration referred to above, theDepositary will be entitled to receive reimbursement forexpenses properly incurred by it in the discharge of its dutiesor exercising any of the powers conferred upon it in relationto the Company and each Fund, subject to approval by theACD.

The Depositary has appointed JPMorgan Chase Bank, N.A.(London Branch) as the Custodian of the Scheme Propertyand is entitled to receive reimbursement of the Custodian’sfees as an expense of the Company. JPMorgan Chase Bank’sremuneration for acting as Custodian is calculated at an advalorem rate determined by the territory or country in whichthe assets of the Company are held. Currently, the lowestrate is 0.0005% and the highest rate is 0.4000%. In addition,the Custodian makes a transaction charge determined by the


territory or country in which the transaction is effected.Currently, these transaction charges range from £2 to £100per transaction.

The Depositary is also entitled to be reimbursed out of theScheme Property in respect of remuneration charged by theCustodian for such services as the ACD, Depositary and theCustodian may from time to time agree, being servicesdelegated to the Custodian by the Depositary in performingor arranging for the performance of the functions conferredon the Depositary by the Instrument of Incorporation or theFCA Rules. Remuneration charged under this paragraph shallaccrue when the relevant transaction or other dealing iseffected and shall be paid in arrears. Currently the Custodiandoes not receive any remuneration under this paragraph.

The Custodian is permitted to increase its remunerationsubject to the agreement of the Depositary and ACD. If theremuneration materially increases the payment out of theScheme, written notice will be given in the same manner asfor an increase to the ACD’s Initial Charge detailed above.

The following further expenses may also be paid out of theScheme Property:

– all charges imposed by, and any expenses of, any agentsappointed by the Depositary to assist in the discharge ofits duties;

– all charges and expenses incurred in connection with thecollection and distribution of income;

– all charges and expenses incurred in relation to thepreparation of the Depositary’s annual report toShareholders; and

– all administration charges and expenses incurred inrelation to stocklending.

In addition to the fees and charges payable to the Depositaryreferred to above, the amount payable to the Depositary outof the property attributable to any Fund may includeamounts payable by way of reimbursement for chargesincurred in connection with its duties (or the exercise ofpowers conferred upon it by the OEIC Regulations and FCARules) referable to (but not limited to):-

(A) custody of assets (including overseas custody services);

(B) the acquisition holding and disposal of property;

(C) the collection and distribution to Shareholders ofdividends, interest and any other income;

(D) the maintenance of distribution accounts;

(E) the conversion of foreign currency;

(F) registration of assets in the name of the Depositary or itsnominee or agents;

(G) borrowings, stocklending or other permittedtransactions;

(H) communications with any parties (including telex,facsimile, SWIFT and electronic mail);

(I) taxation matters;

(J) insurance matters;

(K) dealings in derivatives;

(L) costs and charges relating to banking and bankingtransactions;

(M) preparation of the Depositary’s annual report toShareholders;

(N) taking professional advice;

(O) all charges imposed by, and any expenses of, any agentsappointed by the Depositary to assist in the discharge ofits duties;

(P) conducting legal proceedings;

(Q) the convening and/or attendance at meetings ofShareholders; and

(R) modification of the Instrument of Incorporation,Prospectus, and negotiation and/or modification of theDepositary Agreement and any other agreement enteredinto between the depositary and its delegates.

Any value added tax on any fees, charges or expensespayable to the Depositary will be added to such fees, chargesor expenses.

3.3. Other Expenses

In addition to the ACD's management charge and the feesand expenses of the Depositary (including those theDepositary incurs in the implementation of the DepositaryAgreement), and any applicable value added tax thereon thefollowing expenses may be paid out of the property of aFund:

(A) brokers’ commission, fiscal charges and otherdisbursements which are:-

(1) necessarily incurred in effecting transactions for thatFund; and

(2) normally shown in contract notes, confirmationnotes and difference accounts as appropriate.

(B) interest on borrowings permitted under that Fund andcharges incurred in effecting or terminating or innegotiating or varying the terms of such borrowings;

(C) taxation and duties payable in respect of the property ofthat Fund or the issue of shares in that Fund;

(D) any costs incurred in modifying the Instrument ofIncorporation and the Prospectus, including costsincurred in respect of meetings of holders convened forthe purpose of approving such modifications;

(E) any costs incurred in respect of meetings of holdersconvened on a requisition by holders not including theACD or an associate of the ACD;

(F) liabilities on amalgamation or reconstruction arisingafter the transfer of property to the Company inconsideration for the issue of Shares as more fullydescribed in the FCA Rules;

(G) the audit fees and any proper expenses of the auditorsand of tax, legal and other professional advisers to theCompany;

(H) the fees of the FCA under Schedule 1, Part III of the Actand any corresponding periodic fees of any regulatoryauthority in a country or territory outside the UK in whichShares in that Fund are, or may, be marketed;


(I) any expenses or disbursements of the Depositaryincurred in exercising any powers conferred upon theDepositary, or in performing any of the duties imposedupon it by the OEIC Regulations, the FCA Rules, theInstrument of Incorporation or by law, which duties mayinclude:-

(1) delivery of stock to the Depositary or custodian;

(2) custody of assets;

(3) collection of income and capital;

(4) submission of tax returns;

(5) handling tax claims;

(6) preparation of the Depositary’s annual report; and

(7) such other duties as the Depositary is required bythe OEIC Regulations, the FCA Rules, the Instrumentof Incorporation or by law to perform;

(J) the fees and expenses payable by the ACD to JP MorganEurope Limited in respect of:-

(1) preparation of financial statements for the Funds;

(2) preparation of tax returns; and

(3) any expenses incurred by the Company inconnection with the maintenance of its accountingand other books and records;

(K) any costs arising in connection with the publication anddespatch of the price of Shares;

(L) all costs arising from despatch of the half-yearly andother reports of the Company;

(M) such other expenses as the ACD resolves are properlypayable out of the Fund’s property;

(N) any sum due or payable by virtue of any provision of theFCA Rules;

(O) value added tax payable on these expenses whereappropriate.

Payments will be charged to the capital or income of theFund in accordance with the FCA Rules.

3.4. Initial Expenses and Promotion Costs

Except as mentioned below, the costs and expenses relatingto the authorisation and incorporation of the Company, theoffer of Shares, the preparation and printing of thisProspectus and the fees of the professional advisers to theCompany in connection with the offer will be borne by theACD or other companies in its group.

Each Fund formed after June 1999 may bear its own directestablishment costs.

3.5. Allocation of Charges and Expenses BetweenFunds

All charges and expenses will be charged to a Fund in respectof which they were incurred (and, within a Fund, charges andexpenses will be allocated between Classes in accordancewith the terms of issue of Shares of those Classes). Anycharges and expenses not attributable to any one Fund willnormally be allocated by the ACD to all Funds pro rata to theNet Asset Value of each Fund, although the ACD has

discretion to allocate such charges and expenses in adifferent manner which it considers fair to Shareholdersgenerally.

The net proceeds from subscriptions to a Fund will beinvested in the specific pool of assets constituting that Fund.The Company will maintain for each current Fund a separatepool of assets, each invested for the exclusive benefit of therelevant Fund. The Company as a whole will be responsiblefor all obligations, whichever Fund such liabilities areattributable to, unless otherwise agreed with specificcreditors.

To the extent that any Scheme Property, or any assets to bereceived as part of the Scheme Property, or any costs,charges or expenses to be paid out of the Scheme Property,are not attributable to one Fund only, the ACD will allocatesuch Scheme Property, assets, costs, charges or expensesbetween Funds in a manner which it considers to be fair to allShareholders of the Company.

Where a Fund has different Classes, each Class may attractdifferent charges and so monies may be deducted from theScheme Property attributable to such Classes in unequalproportions. In these circumstances, the proportionateinterests of the Classes within a Fund will be adjustedaccordingly.

3.6. Allocation of Expenses Between Capital andIncome

Expenses (including charges payable to the ACD) areallocated between capital and income in accordance with theRegulations. Expenses will be allocated to a Fund’s incomeaccount unless stated otherwise in Appendix II. Whereexpenses are deducted in the first instance from income, ifand only if this is insufficient, deductions will be made fromcapital. If deductions are made from capital, this will result incapital erosion and constrain growth.

3.7. Income

3.7.1. Accounting PeriodsThe annual accounting period of the Company ends eachyear on the last day of December (the accounting referencedate), and the Company’s first accounting period ended on31 December 1999. The interim accounting period ends eachyear on 30 June.

3.7.2. Income AllocationsAllocations of income are made in respect of the incomeavailable for allocation in each annual accounting period.

Distributions of income for each Fund are paid on or beforethe annual income allocation date of 28 February. In the caseof Funds with income Shares in issue, interim distributionswill be paid on the interim allocation dates set out inAppendix II. The amount available for allocation in anaccounting period is calculated by:

(A) taking the aggregate of the income received orreceivable for the account of the relevant Fund for theaccounting period;

(B) deducting the charges and expenses of the Fund paid orpayable out of income where appropriate for thataccounting period; and

(C) making such adjustments as the ACD considersappropriate (and after consulting the auditors asappropriate) in relation to tax and certain other issues.


If a distribution remains unclaimed for a period of six yearsafter it has become due, it will be forfeited and become partof the capital property of the Company.

The ACD and the Depositary may agree a de minimis amountin respect of which a distribution of income is not required,and how any such amounts are to be treated. Notice of sucha decision will be dealt with in accordance with the FCA Rules.

Distributable income payable on income Shares may be paidby cheque or BACS transfer (if the Shareholder has suppliedto the ACD appropriate bank details).

All remaining income is distributed in accordance with theFCA Rules.

3.7.3. Income EqualisationThe purchase price of a Share reflects the entitlement toshare in the accrued income of the relevant Fund since theprevious allocation. This capital sum, known as “incomeequalisation”, is returned to Shareholders with the firstallocation of income in respect of a Share issued during anaccounting period.

The amount of income equalisation is calculated by dividingthe aggregate of the amounts of income included in the priceof Shares of the relevant Class issued in an annual or interimaccounting period by the number of those Shares andapplying the resultant average to each of the Shares inquestion.

3.8. Taxation

The taxation of income and capital gains of both the Fundsand Shareholders is subject to the fiscal law and practice ofthe UK and of the jurisdictions in which Shareholders areresident or otherwise subject to tax. The following summaryof the anticipated tax treatment in the UK does not constitutelegal or tax advice and applies only to persons holding Sharesas an investment.

Prospective investors should consult their own professionaladvisers on the tax implications of making an investment in,holding or disposing of Shares and the receipt ofdistributions and deemed distributions with respect to suchShares under the laws of the countries in which they may beliable to taxation.

This summary is based on the taxation law and practice inforce at the date of this document, but prospective investorsshould be aware that the relevant fiscal rules and practice ortheir interpretation might change. The following taxsummary is not a guarantee to any investor of the tax resultsof investing in the Funds.

3.8.1. The CompanyAs the Funds are sub-Funds of an open-ended investmentcompany to which the Authorised Investment Funds (Tax)Regulations 2006 apply, the Company and its Funds aregenerally exempt from UK tax on capital gains realised on thedisposal of investments (including interest paying securitiesand derivatives) held within the Funds. Each of the Funds willbe treated as a separate entity for UK tax purposes.

The Funds are liable to UK corporation tax at a current rate of20% on certain categories of income after the deduction ofexpenses of management. The Funds are generally exemptfrom UK corporation tax on the receipt of dividends andother distributions (including dividend distributions received

from non-UK companies) subject to certain exclusions andspecific anti-avoidance rules. Credit is given for all or part ofany foreign tax paid on the Company’s income.

A Fund will make dividend distributions except where over60% of its property has been invested throughout thedistribution period in qualifying assets (broadly interest-paying investments), in which case it will make interestdistributions. Dividend and interest distributions made ortreated as made by each Fund are not subject to UKwithholding tax.

The Schroder Sterling Corporate Bond Fund and SchroderStrategic Credit Fund pay out available income in the form ofinterest distributions.

3.8.2. Taxation of ShareholdersEach Fund will be treated for tax purposes as distributing toits Shareholders for each distribution period the whole of theincome shown in its accounts as being income available forpayment to Shareholders or for reinvestment, regardless ofthe amount actually distributed. Accordingly, any excess ofthe amount so shown over the income actually distributedwill be deemed to be distributed to Shareholders inproportion to their respective interests in the Fund. The dateof any such deemed distribution will be determined by theFund’s relevant interim or annual income allocation date(details of which are given above).

Dividend Distributions

UK resident individual Shareholders

Where shares are held outside an ISA, total dividendsreceived in a tax year up to the tax free dividend allowancewill be free of income tax. Dividends totalling in excess ofthat amount will be subject to tax at the Shareholder’smarginal rate of tax. The rates applicable to dividend incomeare 7.5%, 32.5% and 38.1% where they fall within the basicrate, higher rate and additional rate bands respectively.Dividends received on shares held within an ISA will continueto be tax-free.

UK resident corporate Shareholders

Corporate Shareholders who receive dividend distributionsmay have to divide them into two (in which case allocationbetween franked investment income and unfranked incomereceived will be set out on the tax voucher). Any partrepresenting dividends received from a UK company will betreated as dividend income (that is, franked investmentincome) and no further tax will be due on it. The remainderwill be received as an annual payment after deduction ofincome tax at the basic rate, and corporate shareholdersmay, depending on their circumstances, be liable to tax onthe gross distribution, subject to credit for the tax deemeddeducted..

The corporate streaming rules also limit the maximumamount of income tax that may be reclaimed from HMRC onthe unfranked stream. The maximum amount reclaimable bya corporate Shareholder is the corporate Shareholder’sproportion of the Company’s net liability to corporation tax inrespect of gross income. The tax voucher will state theCompany’s net liability to corporation tax in respect of thegross income.

Interest Distributions

Bond Funds pay interest distributions without the deductionof withholding tax (which will be automatically reinvested inthe Fund in the case of Accumulation Shares).


The Schroder Sterling Corporate Bond Fund and SchroderStrategic Credit Fund pay interest distributions.


Where Shares are held within an ISA, this income is free oftax. For Shares held outside an ISA, a Personal SavingsAllowance is available to exempt the first £1,000 of interestincome from tax in the hands of basic rate taxpayers. TheAllowance is £500 for higher rate taxpayers and nil foradditional rate taxpayers. Total interest received in excess ofthe Allowance in a tax year will be subject to tax at theShareholder’s marginal rate of tax. The rates applicable tosaving income are 20%, 40% and 45% for the year 2019-20where they fall within the basic rate, higher rate andadditional rate bands respectively.


UK resident corporate Shareholders should note that wherethey hold a Fund which makes interest distributions, gainswill be subject to loan relationship rules.

Income Equalisation

The first income allocation received by an investor afterbuying Shares may include an amount of incomeequalisation. This is effectively a repayment of the incomeequalisation paid by the investor as part of the purchaseprice. It is a return of capital, and is not taxable. Rather itshould be deducted from the acquisition cost of the Sharesfor capital gains tax purposes. There is an exception to thisrule when the equalisation forms part of the first incomedistribution following a switch or share/unit class conversion,in which case the entire distribution should be treated asincome and no part of it will represent a return of capital.

Gains


Shareholders who are resident in the UK for tax purposesmay, depending on their personal circumstances, be liable tocapital gains tax on gains arising from the redemption,transfer or other disposal of Shares. However, if the totalgains from all sources realised by an individual Shareholderin a tax year, after deducting allowable losses, are less thanthe annual exemption, there is no capital gains tax to apply.Individual Shareholders with net gains in excess of theannual exemption will be chargeable to capital gains tax atthe rate of tax applicable to them. Where income equalisationapplies (see above), the buying price of Shares includesaccrued income which is repaid to the investor with the firstallocation of income following the purchase. This repaymentis deemed to be a repayment of capital and is thereforemade without deduction of tax but must be deducted fromthe investor’s base cost of the relevant Shares for purposesof calculating any liability to capital gains tax.


Corporate Shareholders within the charge to UK corporationtax will be subject to corporation tax on gains arising fromthe redemption, transfer or other disposal of Shares.

Corporate Shareholders of the Schroder Sterling CorporateBond Fund and Schroder Strategic Credit Fund will also betaxable by reference to the movement in the value of theirholding over their accounting period. Individual Shareholderswill find further information in HM Revenue & Customs’ HelpSheets, available at www.hmrc.gov.uk/sa/forms/content.htmor from the Orderline 0845 9000 404 to help them completetheir tax returns.

This summary on tax issues relating to Funds is an overviewonly and investors should consult their own tax adviser for amore detailed analysis of tax issues arising for them frominvesting in a Fund.

3.8.3. Automatic Exchange of Information US ForeignAccount Tax Compliance Act 2010 (FATCA) andOECD Common Reporting Standard 2016 (CRS)

FATCA was enacted in the United States of America on 18March 2010 as part of the Hiring Incentives to RestoreEmployment Act. It includes provisions under which the ACDas a Foreign Financial institution (FFI) may be required toreport directly to the Internal Revenue Service (IRS) certaininformation about shares in a Fund held by US tax payers orother foreign entities subject to FATCA and to collectadditional identification information for this purpose.Financial institutions that do not enter into an agreementwith the IRS and comply with FATCA regime could be subjectto 30% withholding tax on any payment of US source incomeas well as on the gross proceeds deriving from the sale ofsecurities generating US income made to the ACD. On 30June 2014 the United Kingdom entered into a Model 1Intergovernmental agreement (IGA) with the United States ofAmerica.

CRS has been implemented by Council Directive 2014/107/EUon the mandatory automatic exchange of tax informationwhich was adopted on 9 December 2014. CRS wasimplemented among most member states of the EuropeanUnion on 1 January 2016. Under CRS, the ACD may berequired to report to HMRC certain information about Sharesheld in a Fund or Funds by investors who are tax resident in aCRS participating country and to collect additionalidentification information for this purpose.

In order to comply with its FATCA and CRS obligations, theACD may be required to obtain certain information fromInvestors so as to ascertain their tax status. Under the FATCAIGA referred to above, if the Investor is a specified US person,a US owned non-US entity, non- participating FFI or does notprovide the requisite documentation, the ACD will need toreport information on these Investors to HMRC, inaccordance with applicable laws and regulations, which will inturn report this to the IRS. Under CRS, if the Investor is taxresident in a CRS participating country and does not providethe requisite documentation, the ACD will need to reportinformation on these Investors to HMRC, in accordance withapplicable laws and regulations. Provided that the ACD actsin accordance with these provisions it will not be subject towithholding tax under FATCA.

Shareholders and intermediaries should note that it is theexisting policy of the ACD that Shares are not being offeredor sold for the account of US Persons or Investors who do notprovide the appropriate CRS information. Subsequenttransfers of Shares to US Persons are prohibited. If Sharesare beneficially owned by any US Person or a person who hasnot provided the appropriate CRS information, the ACD mayin its discretion compulsorily redeem such Shares.Shareholders should moreover note that under the FATCAlegislation, the definition of specified US persons will includea wider range of Investors than the current US Persondefinition.


Appendix IRisks of Investments1. Investment Objective RiskInvestment objectives express an intended result but there isno guarantee that such a result will be achieved. Dependingon market conditions and the macro economic environment,investment objectives may become more difficult or evenimpossible to achieve. There is no express or impliedassurance as to the likelihood of achieving the investmentobjective for a Fund.

2. Risk of Suspension of Share dealingsInvestors are reminded that in certain circumstances theirright to redeem or transfer Shares may be suspended (seesection 3.10 “Suspension of Dealing in Shares”).

3. Interest Rate RiskThe values of bonds and other debt instruments usually riseand fall in response to changes in interest rates. Declininginterest rates generally increase the values of existing debtinstruments, and rising interest rates generally reduce thevalue of existing debt instruments. Interest rate risk isgenerally greater for investments with long durations ormaturities. Some investments give the issuer the option tocall or redeem an investment before its maturity date. If anissuer calls or redeems an investment during a time ofdeclining interest rates, a Fund might have to reinvest theproceeds in an investment offering a lower yield, andtherefore might not benefit from any increase in value as aresult of declining interest rates.

4. Credit RiskThe ability, or perceived ability, of an issuer of a debt securityto make timely payments of interest and principal on thesecurity will affect the value of the security. It is possible thatthe ability of the issuer to meet its obligation will declinesubstantially during the period when a Fund owns securitiesof that issuer, or that the issuer will default on its obligations.An actual or perceived deterioration in the ability of an issuerto meet its obligations will likely have an adverse effect onthe value of the issuer’s securities.

If a security has been rated by more than one nationallyrecognised statistical rating organisation the Fund’sInvestment Adviser may consider the highest rating for thepurposes of determining whether the security is investmentgrade. A Fund will not necessarily dispose of a security heldby it if its rating falls below investment grade, although theFund’s Investment Adviser will consider whether the securitycontinues to be an appropriate investment for the Fund. TheFund’s Investment Adviser considers whether a security isinvestment grade only at the time of purchase. Some of theFunds will invest in securities which will not be rated by anationally recognised statistical rating organisation, but thecredit quality will be determined by the Investment Adviser.

Credit risk is generally greater for investments issued at lessthan their face values and required to make interestpayments only at maturity rather than at intervals during thelife of the investment. Credit rating agencies base theirratings largely on the issuer’s historical financial conditionand the rating agencies’ investment analysis at the time ofrating. The rating assigned to any particular investment doesnot necessarily reflect the issuer’s current financial condition,

and does not reflect an assessment of an investment’svolatility and liquidity. Some of the Funds invest in belowinvestment grade securities. Although investment gradesecurities generally have lower credit risk than securitiesrated below investment grade, they may share some of therisks of lower-rated securities, including the possibility thatthe issuers may be unable to make timely payments ofinterest and principal and thus default.

5. Liquidity RiskLiquidity risk exists when particular investments are difficultto purchase or sell. A Fund’s investment in illiquid securitiesmay reduce the returns of the Fund because it may be unableto sell the illiquid securities at an advantageous time or price.Investments in foreign securities, derivatives or securitieswith substantial market and/or credit risk tend to have thegreatest exposure to liquidity risk. Illiquid securities may behighly volatile and difficult to value.

6. Inflation / Deflation RiskInflation is the risk that a Fund’s assets or income from aFund’s investments may be worth less in the future asinflation decreases the value of money. As inflation increases,the real value of a Fund’s portfolio could decline. Deflationrisk is the risk that prices throughout the economy maydecline over time. Deflation may have an adverse effect onthe creditworthiness of issuers and may make issuer defaultmore likely, which may result in a decline in the value of aFund’s portfolio.

7. Financial Derivative Instrument RiskFor a Fund that uses financial derivative instruments to meetits investment objective, there is no guarantee that theperformance of the financial derivative instruments will resultin a positive effect for the Fund and its Shareholders. The useof financial derivative instruments may increase the Shareprice volatility, which may result in higher losses for theShareholder.

A Fund may incur costs and fees in connection with totalreturn swaps, contracts for difference or other financialderivative instruments with similar characteristics, uponentering into these instruments and/or any increase ordecrease of their notional amount. The amount of these feesmay be fixed or variable. Information on costs and feesincurred by each Fund in this respect, as well as the identityof the recipients and any affiliation they may have with theDepositary, the Investment Adviser or the ACD, if applicable,may be available in the annual report.

8. Warrants RiskWhen a Fund invests in warrants, the price, performance andliquidity of such warrants are typically linked to theunderlying stock. However, the price, performance andliquidity of such warrants will generally fluctuate more thanthe underlying securities because of the greater volatility ofthe warrants market. In addition to the market risk related tothe volatility of warrants, a Fund investing in syntheticwarrants, where the issuer of the synthetic warrant isdifferent to that of the underlying stock, is subject to the riskthat the issuer of the synthetic warrant will not perform itsobligations under the transactions which may result in theFund, and ultimately its Shareholders, suffering a loss.


9. Credit Default Swap RiskThe use of credit default swaps normally carries a higher riskthan investing in bonds directly. A credit default swap allowsthe transfer of default risk. This allows a Fund to effectivelybuy insurance on a reference obligation it holds (hedging theinvestment) or buy protection on a reference obligation itdoes not physically own in the expectation that the credit willdecline in quality. One party, the protection buyer, makes astream of payments to the seller of the protection, and apayment is due to the buyer if there is a credit event (adecline in credit quality, which will be predefined in theagreement between the parties). If the credit event does notoccur the buyer pays all the required premiums and the swapterminates on maturity with no further payments. The risk ofthe buyer is therefore limited to the value of the premiumspaid. In addition, if there is a credit event and the Fund doesnot hold the underlying reference obligation, there may be amarket risk as the Fund may need time to obtain thereference obligation and deliver it to the counterparty.Furthermore, if the counterparty becomes insolvent, the Fundmay not recover the full amount due to it from thecounterparty. The market for credit default swaps maysometimes be more illiquid than the bond markets. A Fundwill mitigate this risk by monitoring in an appropriate mannerthe use of this type of transaction.

10. Futures, Options and Forward TransactionsRisk

A Fund may use options, futures and forward contracts oncurrencies, securities, indices, currency, volatility, inflationand interest rates for hedging and investment purposes.

Transactions in futures may carry a high degree of risk. Theamount of the initial margin is small relative to the value ofthe futures contract so that transactions are “leveraged” or“geared”. A relatively small market movement will have aproportionately larger impact which may work for or againstthe Fund. The placing of certain orders which are intended tolimit losses to certain amounts may not be effective becausemarket conditions may make it impossible to execute suchorders.

Transactions in options may also carry a high degree of risk.Selling (“writing” or “granting”) an option generally entailsconsiderably greater risk than purchasing options. Althoughthe premium received by the Fund is fixed, the Fund maysustain a loss well in excess of that amount. The Fund willalso be exposed to the risk of the purchaser exercising theoption and the Fund will be obliged either to settle the optionin cash or to acquire or deliver the underlying investment. Ifthe option is “covered” by the Fund holding a correspondingposition in the underlying investment or a future on anotheroption, the risk may be reduced.

Forward transactions and purchasing options, in particularthose traded over-the-counter and not cleared through acentral counterparty, have an increased counterparty risk. If acounterparty defaults, the Fund may not get the expectedpayment or delivery of assets. This may result in the loss ofthe unrealised profit.

11. Credit Linked Note RiskA credit linked note is a debt instrument which assumes bothcredit risk of the relevant reference entity (or entities) andthe issuer of the credit linked note. There is also a riskassociated with the coupon payment; if a reference entity in abasket of credit linked notes suffers a credit event, thecoupon will be re-set and paid on the reduced nominal

amount. Both the residual capital and coupon are exposed tofurther credit events. In extreme cases, the entire capital maybe lost. There is also the risk that a note issuer may default.

12. Equity Linked Note RiskThe return component of an equity linked note is based onthe performance of a single equity security, a basket ofsecurities or an equity index. Investment in theseinstruments may cause a capital loss if the value of theunderlying security decreases. In extreme cases the entirecapital may be lost. These risks are also found in investing inequity investments directly. The return payable for the note isdetermined at a specified time on a valuation date,irrespective of the fluctuations in the underlying stock price.There is no guarantee that a return or yield on an investmentwill be made. There is also the risk that a note issuer maydefault.

A Fund may use equity linked notes to gain access to certainmarkets, for example emerging and less developed markets,where direct investment is not possible. This approach mayresult in the following additional risks being incurred – lack ofa secondary market in such instruments, illiquidity of theunderlying securities, and difficulty selling these instrumentsat times when the underlying markets are closed.

13. General Risks of over-the-counter “OTC”Derivative Transactions

Instruments traded in OTC markets may trade in smallervolumes, and their prices may be more volatile thaninstruments principally traded on exchanges. Suchinstruments may be less liquid than more widely tradedinstruments. In addition, the prices of such instruments mayinclude an undisclosed dealer mark-up which a Fund may payas part of the purchase price.

In general, there is less government regulation andsupervision of transactions in OTC markets than oftransactions entered into on organised exchanges. OTCderivatives are executed directly with the counterparty ratherthan through a recognised exchange and clearing house.Counterparties to OTC derivatives are not afforded the sameprotections as may apply to those trading on recognisedexchanges, such as the performance guarantee of a clearinghouse.

The principal risk when engaging in OTC derivatives (such asnon-exchange traded options, forwards, swaps or contractsfor difference) is the risk of default by a counterparty whohas become insolvent or is otherwise unable or refuses tohonour its obligations as required by the terms of theinstrument. OTC derivatives may expose a Fund to the riskthat the counterparty will not settle a transaction inaccordance with its terms, or will delay the settlement of thetransaction, because of a dispute over the terms of thecontract (whether or not bona fide) or because of theinsolvency, bankruptcy or other credit or liquidity problemsof the counterparty. Counterparty risk is generally mitigatedby the transfer or pledge of collateral in favour of the Fund.The value of the collateral may fluctuate, however, and it maybe difficult to sell, so there are no assurances that the valueof collateral held will be sufficient to cover the amount owedto the Fund.

A Fund may enter into OTC derivatives cleared through aclearinghouse that serves as a central counterparty. Centralclearing is designed to reduce counterparty risk and increaseliquidity compared to bilaterally-cleared OTC derivatives, butit does not eliminate those risks completely. The centralcounterparty will require margin from the clearing broker


which will in turn require margin from the Fund. There is arisk of loss by a Fund of its initial and variation margindeposits in the event of default of the clearing broker withwhich the Fund has an open position or if margin is notidentified and correctly report to the particular -Fund, inparticular where margin is held in an omnibus accountmaintained by the clearing broker with the centralcounterparty. In the event that the clearing broker becomesinsolvent, the Fund may not be able to transfer or "port" itspositions to another clearing broker.

EU Regulation No 648/2012 on OTC derivatives, centralcounterparties and trade repositories (also known as theEuropean Market Infrastructure Regulation, or “EMIR”),which came into force on 16 August 2012, introduces uniformrequirements in respect of OTC derivative transactions byrequiring certain “eligible” OTC derivatives transactions to besubmitted for clearing to regulated central clearingcounterparties and by mandating the reporting of certaindetails of derivatives transactions to trade repositories. Inaddition, EMIR imposes requirements for appropriateprocedures and arrangements to measure, monitor andmitigate operational and counterparty credit risk in respect ofOTC derivatives contracts which are not subject to mandatoryclearing. These requirements include the exchange of marginand, where initial margin is exchanged, its segregation by theparties, including by the Funds.

While many of the obligations under EMIR have come intoforce, as at the date of this Prospectus the requirement tosubmit certain OTC derivative transactions to central clearingcounterparties (CCPs) and the margin requirements for non-cleared OTC derivative transactions are subject to astaggered implementation timeline. It is not yet fully clearhow the OTC derivatives market will adapt to the newregulatory regime. Prospective Shareholders andShareholders should also be aware that EMIR will transposedinto UK law following Brexit (“UK EMIR”), but that thetransposition of specific EMIR requirements in this contextmay be slightly nuanced in order to take account of theexisting UK legal framework within which UK EMIR willfunction. Going forward, potentially there could also bedifferences in the manner in which further EMIR obligations(for instance, under the EMIR Refit) and similar futureobligations under UK EMIR are defined and implemented.Accordingly, it is difficult to predict the full impact of EMIRand UK EMIR on the Funds, which may include an increase inthe overall costs of entering into and maintaining OTCderivatives contracts and the need to comply with multipleregulatory regimes. Prospective Shareholders andShareholders should be aware that the regulatory changesarising from EMIR, UK EMIR and other similar regulationssuch as the Dodd-Frank Wall Street Reform and ConsumerProtection Act may in due course adversely affect a Fund’sability to adhere to its investment policy and achieve itsinvestment objective. Investors should be aware that theregulatory changes arising from EMIR and other applicablelaws requiring central clearing of OTC derivatives may in duecourse adversely affect the ability of the Funds to adhere totheir respective investment policies and achieve theirinvestment objective.

Investments in OTC derivatives may be subject to the risk ofdiffering valuations arising out of different permittedvaluation methods. Although the Company has implementedappropriate valuation procedures to determine and verify thevalue of OTC derivatives, certain transactions are complexand valuation may only be provided by a limited number ofmarket participants who may also be acting as the

counterparty to the transactions. Inaccurate valuation canresult in inaccurate recognition of gains or losses andcounterparty exposure.

Unlike exchange-traded derivatives, which are standardisedwith respect to their terms and conditions, OTC derivativesare generally established through negotiation with the otherparty to the instrument. While this type of arrangementallows greater flexibility to tailor the instrument to the needsof the parties, OTC derivatives may involve greater legal riskthan exchange-traded instruments, as there may be a risk ofloss if the agreement is deemed not to be legally enforceableor not documented correctly. There also may be a legal ordocumentation risk that the parties may disagree as to theproper interpretation of the terms of the agreement.However, these risks are generally mitigated, to a certainextent, by the use of industry-standard agreements such asthose published by the International Swaps and DerivativesAssociation (ISDA).

14. OTC Derivative Clearing RiskA Fund’s OTC derivative transactions may be cleared prior tothe date on which the mandatory clearing obligation takeseffect under EMIR in order to take advantage of pricing andother potential benefits. OTC derivative transactions may becleared under the “agency” model or the “principal-to-principal” model. Under the principal-to-principal modelthere is usually one transaction between the Fund and itsclearing broker and another back-to-back transactionbetween the clearing broker and the CCP whereas under theagency model there is one transaction between the Fund andthe CCP. It is expected that many of a Fund’s OTC derivativetransactions which are cleared will be under the “principal-to-principal” model. However, the following risks are relevant toboth models unless otherwise specified.

The CCP will require margin from the clearing broker whichwill in turn require margin from the Fund. The Fund’s assetsposted as margin will be held in an account maintained bythe clearing broker with the CCP. Such account may containassets of other clients of the clearing broker (an “omnibusaccount”) and if so, in the event of a shortfall, the assets ofthe Fund transferred as margin may be used to cover lossesrelating to such other clients of the clearing broker upon aclearing broker or CCP default.

The margin provided to the clearing broker by a Fund mayexceed the margin that the clearing broker is required toprovide to the CCP, particularly where an omnibus account isused. The Fund will be exposed to the clearing broker inrespect of any margin which has been posted to the clearingbroker but not posted to and recorded in an account with theCCP. In the event of the insolvency or failure of the clearingbroker, the Fund’s assets posted as margin may not be aswell protected as if they had been recorded in an accountwith the CCP.

A Fund will be exposed to the risk that margin is notidentified to the particular Fund while it is in transit from theFund’s account to the clearing broker’s account and onwardsfrom the clearing broker’s account to the CCP. Such margincould, prior to its settlement, be used to offset the positionsof another client of the clearing broker in the event of aclearing broker or CCP default.

A CCP’s ability to identify assets attributable to a particularclient in an omnibus account is reliant on the correctreporting of such client’s positions and margin by therelevant clearing broker to that CCP. A Fund is thereforesubject to the operational risk that the clearing broker doesnot correctly report such positions and margin to the CCP. In


such event, margin transferred by the Fund in an omnibusaccount could be used to offset the positions of anotherclient of the clearing broker in that omnibus account in theevent of a clearing broker or CCP default.

In the event that the clearing broker becomes insolvent, aFund may be able to transfer or “port” its positions toanother clearing broker. Porting will not always beachievable. In particular, under the principal-to-principalmodel, where a Fund’s positions are within an omnibusaccount, the ability of the Fund to port its positions isdependent on the timely agreement of all other partieswhose positions are in that omnibus account and so portingmay not be achieved. Where porting is not achieved, theFund’s positions may be liquidated and the value given tosuch positions by the CCP may be lower than the full valueattributed to them by the Fund. Additionally, there may be aconsiderable delay in the return of any net sum due to theFund while insolvency proceedings in respect of the clearingbroker are ongoing.

If a CCP becomes insolvent, subject to administration or anequivalent proceeding or otherwise fails to perform, a Fund isunlikely to have a direct claim against the CCP and any claimwill be made by the clearing broker. The rights of a clearingbroker against the CCP will depend on the law of the countryin which the CCP is established and other optionalprotections the CCP may offer, such as the use of a thirdparty custodian to hold the Fund’s margin. On the failure of aCCP, it is likely to be difficult or impossible for positions to beported to another CCP and so transactions will likely beterminated. In such circumstances, it is likely that the clearingbroker will only recover a percentage of the value of suchtransactions and consequently the amount the Fund willrecover from the clearing broker will be similarly limited. Thesteps, timing, level of control and risks relating to thatprocess will depend on the CCP, its rules and the relevantinsolvency law. However, it is likely that there will be materialdelay and uncertainty around when and how much assets orcash, if any, the clearing broker will receive back from theCCP and consequently the amount the Fund will receive fromthe clearing broker.

15. Counterparty RiskA Fund conducts transactions through or with brokers,clearing houses, market counterparties and other agents. AFund will be subject to the risk of the inability of any suchcounterparty to perform its obligations, whether due toinsolvency, bankruptcy or other causes.

A Fund may invest into instruments such as notes, swaps orwarrants the performance of which is linked to a market orinvestment to which the Fund seeks to be exposed. Suchinstruments are issued by a range of counterparties andthrough its investment the Fund will be subject to thecounterparty risk of the issuer, in addition to the investmentexposure it seeks.

The Funds will only enter into OTC derivatives transactions,repurchase transactions and stock lending transactions withreputable institutions which are subject to prudentialsupervision and specialising in these types of transactions. Inprinciple, the counterparty risk for such transactions shouldnot exceed 10% of the relevant Fund’s net assets when thecounterparty is an approved bank or 5% of its net assets inother cases. However, if a counterparty defaults, the actuallosses may exceed these limits. If a counterparty were todefault on its obligations this may have an adverse impact onthe performance of the relevant Fund causing loss toinvestors.

16. Risks associated with Dodd-Frank Wall StreetReform

Recent legislative and regulatory reforms, including Dodd-Frank Wall Street Reform, are expected to result in newregulation of swap agreements, including clearing, margin,reporting, recordkeeping and registration requirements. Newregulations, could, amongst other things, restrict a Fund’sability to engage in swap transactions (for example, bymaking certain types of swap transactions no longer availableto a Fund) and/or increase the costs of such swaptransactions (for example, by increasing margin or capitalrequirements) and a Fund may as a result be unable toexecute its investment strategies in a manner the ACD mightotherwise choose. It is also unclear how the regulatorychanges will affect counterparty risk.

17. Custody RiskAssets of the Funds are safe kept by the Custodian andShareholders are exposed to the risk of the Custodian notbeing able to fully meet its obligation to restitute in a shorttime frame all of the assets of the Funds in the case ofbankruptcy of the Custodian. Securities of the Funds willnormally be identified in the Custodian's books as belongingto the Funds and segregated from other assets of theCustodian which mitigates but does not exclude the risk ofnon restitution in case of bankruptcy. However, no suchsegregation applies to cash which increases the risk of nonrestitution in case of bankruptcy. The Custodian does notkeep all the assets of the Funds itself but uses a network ofsub-custodians which are not part of the same group ofcompanies as the Custodian. Shareholders are exposed tothe risk of bankruptcy of the sub-custodians in the samemanner as they are to the risk of bankruptcy of theCustodian.

A Fund may invest in markets where custodial and/orsettlement systems are not fully developed. The Custodianmay have no liability where the assets of the Funds that aretraded in such markets.

18. Smaller Companies RiskA Fund which invests in smaller companies may fluctuate invalue more than other Funds. Smaller companies may offergreater opportunities for capital appreciation than largercompanies, but may also involve certain special risks. Theyare more likely than larger companies to have limitedproduct lines, markets or financial resources, or to depend ona small, inexperienced management group. Securities ofsmaller companies may, especially during periods wheremarkets are falling, become less liquid and experience short-term price volatility and wide spreads between dealing prices.They may also trade in the OTC market or on a regionalexchange, or may otherwise have limited liquidity.Consequently investments in smaller companies may bemore vulnerable to adverse developments than those inlarger companies and the Fund may have more difficultyestablishing or closing out its securities positions in smallercompanies at prevailing market prices. Also, there may beless publicly available information about smaller companiesor less market interest in the securities, and it may takelonger for the prices of the securities to reflect the full valueof the issuers’ earning potential or assets.

19. Technology Related Companies RiskInvestments in the technology sector may present a greaterrisk and a higher volatility than investments in a broaderrange of securities covering different economic sectors. Theequity securities of the companies in which a Fund may invest


are likely to be affected by world-wide scientific ortechnological developments, and their products or servicesmay rapidly fall into obsolescence. In addition, some of thesecompanies offer products or services that are subject togovernmental regulation and may, therefore, be adverselyaffected by governmental policies. As a result, theinvestments made by a Fund may drop sharply in value inresponse to market, research or regulatory setbacks.

20. Lower Rated, Higher Yielding Debt SecuritiesRisk

A Fund may invest in lower rated, higher yielding debtsecurities, which are subject to greater market and creditrisks than higher rated securities. Generally, lower ratedsecurities pay higher yields than more highly rated securitiesto compensate investors for the higher risk. The lower ratingsof such securities reflect the greater possibility that adversechanges in the financial condition of the issuer, or risinginterest rates, may impair the ability of the issuer to makepayments to holders of the securities. Accordingly, aninvestment in the Fund is accompanied by a higher degree ofcredit risk than is present with investments in higher rated,lower yielding securities.

21. Mortgage related and other asset backedsecurities Risks

Mortgage-backed securities, including collateralisedmortgage obligations and certain stripped mortgage-backedsecurities represent a participation in, or are secured by,mortgage loans. Asset-backed securities are structured likemortgage-backed securities, but instead of mortgage loansor interests in mortgage loans, the underlying assets mayinclude such items as motor vehicles instalment sales orinstalment loan contracts, leases of various types of real andpersonal property and receivables from credit cardagreements.

Traditional debt investments typically pay a fixed rate ofinterest until maturity, when the entire principal amount isdue. By contrast, payments on mortgage-backed and manyasset-backed investments typically include both interest andpartial payment of principal. Principal may also be prepaidvoluntarily, or as a result of refinancing or foreclosure. AFund may have to invest the proceeds from prepaidinvestments in other investments with less attractive termsand yields. As a result, these securities may have lesspotential for capital appreciation during periods of declininginterest rates than other securities of comparable maturities,although they may have a similar risk of decline in marketvalue during periods of rising interest rates. As theprepayment rate generally declines as interest rates rise, anincrease in interest rates will likely increase the duration, andthus the volatility, of mortgage-backed and asset-backedsecurities. In addition to interest rate risk (as describedabove), investments in mortgage-backed securitiescomposed of sub-prime mortgages may be subject to ahigher degree of credit risk, valuation risk and liquidity risk(as described above). Duration is a measure of the expectedlife of a fixed income security that is used to determine thesensitivity of the security’s price to changes in interest rates.Unlike the maturity of a fixed income security, whichmeasures only the time until final payment is due, durationtakes into account the time until all payments of interest andprincipal on a security are expected to be made, includinghow these payments are affected by prepayments and bychanges in interest rates.

The ability of an issuer of asset-backed securities to enforceits security interest in the underlying assets may be limited.Some mortgage-backed and asset backed investmentsreceive only the interest portion or the principal portion ofpayments on the underlying assets. The yields and values ofthese investments are extremely sensitive to changes ininterest rates and in the rate of principal payments on theunderlying assets. Interest portions tend to decrease in valueif interest rates decline and rates of repayment (includingprepayment) on the underlying mortgages or assetsincrease; it is possible that a Fund may loose the entireamount of its investment in an interest portion due to adecrease in interest rates. Conversely, principal portions tendto decrease in value if interest rates rise and rates ofrepayment decrease. Moreover, the market for interestportions and principal portions may be volatile and limited,which may make them difficult for a Fund to buy or sell.

A Fund may gain investment exposure to mortgage-backedand asset-backed investments by entering into agreementswith financial institutions to buy the investments at a fixedprice in a future date. A Fund may or may not take delivery ofthe investments at the termination date of such anagreement, but will nonetheless be exposed to changes inthe value of the underlying investments during the term ofthe agreement.

22. Initial Public Offerings RiskA Fund may invest in initial public offerings, which frequentlyare smaller companies. Such securities have no tradinghistory, and information about these companies may only beavailable for limited periods. The prices of securities involvedin initial public offerings may be subject to greater pricevolatility than more established securities.

23. Risk associated with Debt securities issuedpursuant to Rule 144A under the SecuritiesAct of 1933

SEC Rule 144A provides a safe harbour exemption from theregistration requirements of the Securities Act of 1933 forresale of restricted securities to qualified institutional buyers,as defined in the rule. The advantage for investors may behigher returns due to lower administration charges.However, dissemination of secondary market transactions inrule 144A securities is restricted and only available toqualified institutional buyers. This might increase thevolatility of the security prices and, in extremes conditions,decrease the liquidity of a particular rule 144A security.

24. Emerging and Less Developed MarketsSecurities Risk

Investing in emerging markets and less developed marketssecurities poses risks different from, and/or greater than,risks of investing in the securities of developed countries.These risks include; smaller market-capitalisation of securitiesmarkets, which may suffer periods of relative illiquidity;significant price volatility; restrictions on foreign investment;and possible repatriation of investment income and capital.In addition, foreign Investors may be required to register theproceeds of sales, and future economic or political crisescould lead to price controls, forced mergers, expropriation orconfiscatory taxation, seizure, nationalisation or the creationof government monopolies. Inflation and rapid fluctuations ininflation rates have had, and may continue to have, negativeeffects on the economies and securities markets of certainemerging and less developed countries.


Although many of the emerging and less developed marketsecurities in which a Fund may invest are traded on securitiesexchanges, they may trade in limited volume and mayencounter settlement systems that are less well organisedthan those of developed markets. Supervisory authoritiesmay also be unable to apply standards that are comparablewith those in developed markets. Thus there may be risksthat settlement may be delayed and that cash or securitiesbelonging to the relevant Fund may be in jeopardy becauseof failures of or defects in the systems or because of defectsin the administrative operations of counterparties. Suchcounterparties may lack the substance or financial resourcesof similar counterparties in a developed market. There mayalso be a danger that competing claims may arise in respectof securities held by or to be transferred to the Fund andcompensation schemes may be non-existent or limited orinadequate to meet the Fund’s claims in any of these events.

In addition investments in certain emerging and lessdeveloped countries, such as Russia and Ukraine, arecurrently subject to certain heightened risks with regard tothe ownership and custody of securities. In these countries,shareholdings are evidenced by entries in the books of acompany or its registrar (which is neither an agent norresponsible to the custodian). No certificates representingshareholdings in companies will be held by the custodian orany of its local correspondents or in an effective centraldepository system. As a result of this system and the lack ofeffective state regulation and enforcement, a Fund could loseits registration and ownership of the securities throughfraud, negligence or even mere error. Debt securities alsohave an increased custodial risk associated with them as suchsecurities may, in accordance with market practice in theemerging or less developed countries, be held in custodywith institutions in those countries which may not haveadequate insurance coverage to cover loss due to theft,destruction or default. It should be taken into considerationthat when investing in government debt of emerging or lessdeveloped countries, particularly Ukraine, whether via theprimary or secondary market, local regulations may stipulatethat investors maintain a cash account directly with the sub-custodian. Such balance represents a debt due from the sub-custodian to the investors and the custodian shall not beliable for this balance.

Additional risks of emerging market securities may include:greater social, economic and political uncertainty andinstability; more substantial governmental involvement in theeconomy; less governmental supervision and regulation;unavailability of currency hedging techniques; companiesthat are newly organised and small; differences in auditingand financial reporting standards, which may result inunavailability of material information about issuers; and lessdeveloped legal systems. In addition taxation of interest andcapital gains received by non-residents varies amongemerging and less developed markets and, in some casesmay be comparatively high. There may also be less well-defined tax laws and procedures and such laws may permitretroactive taxation so that the Fund could in the futurebecome subject to local tax liabilities that had not beenanticipated in conducting investment activities or valuingassets.

25. Shanghai-Hong Kong Stock Connect andShenzhen-Hong Kong Stock Connect

All Funds which can invest in China may invest in China A-Shares through the Shanghai-Hong Kong Stock Connect andthe Shenzhen-Hong Kong Stock Connect programmes (theStock Connect) subject to any applicable regulatory limits.The Shanghai-Hong Kong Stock Connect and the Shenzhen-

Hong Kong Stock Connect programmes are securities tradingand clearing linked programmes developed by Hong KongExchanges and Clearing Limited (HKEx), the Hong KongSecurities Clearing Company Limited (HKSCC), ShanghaiStock Exchange or Shenzhen Stock Exchange, and ChinaSecurities Depository and Clearing Corporation Limited(ChinaClear) with an aim to achieve mutual stock marketaccess between mainland China and Hong Kong. Theseprogrammes allow foreign investors to trade certainShanghai Stock Exchange or Shenzhen Stock Exchange listedChina A-Shares through their Hong Kong based brokers.

The Funds seeking to invest in the domestic securitiesmarkets of the Peoples Republic of China (PRC) may use theStock Connect in addition to the QFII and RQFII schemes and,thus, are subject to the following additional risks:

General Risk: The relevant regulations are untested andsubject to change. There is no certainty as to how they will beapplied which could adversely affect the Funds. The StockConnect requires use of new information technology systemswhich may be subject to operational risk due to its cross-border nature. If the relevant systems fail to functionproperly, trading in both Hong Kong and Shanghai/Shenzhenmarkets through the Stock Connect could be disrupted.

Clearing and Settlement Risk: The HKSCC and ChinaClearhave established the clearing links and each will become aparticipant of each other to facilitate clearing and settlementof cross-boundary trades. For cross-boundary trades initiatedin a market, the clearing house of that market will on onehand clear and settle with its own clearing participants, andon the other hand undertake to fulfil the clearing andsettlement obligations of its clearing participants with thecounterparty clearing house.

Legal /Beneficial Ownership: Where securities are held incustody on a cross-border basis, there are specific legal/beneficial ownership risks linked to compulsory requirementsof the local Central Securities Depositaries, HKSCC andChinaClear.

As in other emerging and less developed markets (pleaserefer above to the section entitled “Emerging Markets andLess Developed Markets Securities Risk”), the legislativeframework is only beginning to develop the concept of legal/formal ownership and of beneficial ownership or interest insecurities. In the case of China Connect legal ownership isfurther complicated by the fact that both local CentralSecurities Depositaries – HKSCC and ChinaClear – need to bepart of the chain of title. This means that multiple legalframeworks are relevant to establishing title and thatoperating risk is increased by the need to engage bothHKSCC and ChinaClear in the processing of dividend paymentand other asset servicing activity and, potentially, sometrades which require movements of securities in HKSCC’saccount at ChinaClear.

In the event ChinaClear defaults, HKSCC will act inaccordance with its participating members’ instructions totake action against issuers of securities held through ChinaConnect. However, as would be the case when investing inChina A shares through arrangements with banks in China,recourse in the event of ChinaClear’s default may be limited.Accordingly, in the event of a default by ChinaClear, theFunds may not fully recover their losses or their StockConnect securities and the process of recovery could also bedelayed.

Operational Risk: The HKSCC provides clearing, settlement,nominee functions and other related services of the tradesexecuted by Hong Kong market participants. PRC regulations


which include certain restrictions on selling and buying willapply to all market participants. In the case of sale, pre-delivery of shares are required to the broker, increasingcounterparty risk. Because of such requirements, the Fundsmay not be able to purchase and/or dispose of holdings ofChina A-Shares in a timely manner.

Quota Limitations: The program is subject to quotalimitations which may restrict the Funds ability to invest inChina A-Shares through the program on a timely basis.

Investor Compensation: The Funds will not benefit from localinvestor compensation schemes. Stock Connect will onlyoperate on days when both the PRC and Hong Kong marketsare open for trading and when banks in both markets areopen on the corresponding settlement days. There may beoccasions when it is a normal trading day for the PRC marketbut the Funds cannot carry out any China A-Shares trading.The Funds may be subject to risks of price fluctuations inChina A-Shares during the time when Stock Connect is nottrading as a result.

Tax: Investors should be aware that changes in mainlandChina's taxation legislation could affect the amount ofincome which may be derived, and the amount of capitalreturned, from the investments in a Fund. In particular, thetaxation position of foreign investors holding Chinese shareshas historically been uncertain. The PRC tax authoritiesannounced in November 2014 that gains on the transfer ofshares and other equity investments in China by foreigninvestors would be subject to a 'temporary' exemption fromcapital gains withholding tax. There was no comment aboutthe duration of this temporary exemption. The situation isbeing kept under review for indications of any change inmarket practice or the release of further guidance from thePRC authorities, and accruals for PRC capital gainswithholding tax may commence without notice upon therelease of such guidance if the ACD and its advisers believethis is appropriate.

26. China Bond ConnectChina Bond Connect (the Bond Connect) is a bond tradinglink between China and Hong Kong which allows foreigninstitutional investors to invest in onshore Chinese bonds andother debt instruments traded on the China Interbank BondMarket (CIBM). Funds can, subject to their investment policy,invest in the instruments traded on the CIBM via the BondConnect.

The Bond Connect is an initiative launched in July 2017 formutual bond market access between Hong Kong andmainland China, established by China Foreign ExchangeTrade System & National Interbank Funding Centre (CFETS),China Central Depositary & Clearing Co., Ltd, ShanghaiClearing House, Hong Kong Exchanges and Clearing Limitedand Central Moneymarkets Unit.

Under the prevailing regulations in mainland China, eligibleforeign investors may invest in the bonds traded on the CIBMthrough the northbound trading of the Bond Connect(Northbound Trading Link). There is no investment quota forthe Northbound Trading Link.

Pursuant to the prevailing regulations in mainland China, anoffshore custody agent recognised by the Hong KongMonetary Authority (currently, the Central MoneymarketsUnit) must open omnibus nominee accounts with an onshorecustody agent recognised by the People's Bank of China(currently recognised onshore custody agents are the ChinaSecurities Depository & Clearing Co., Ltd and InterbankClearing Company Limited). All bonds traded by eligible

foreign investors will be registered in the name of CentralMoneymarkets Unit, which will hold such bonds as a nomineeowner.

For investments via the Bond Connect, the relevant filings,registration with the People's Bank of China and accountopening have to be carried out via an onshore settlementagent, offshore custody agent, registration agent and/orother third parties. As such, the Funds are subject to the risksof default on the part of such third parties.

Investing in instruments traded on the CIBM via the BondConnect is also subject to regulatory risks. The relevant rulesand regulations are subject to change which may potentiallyhave retrospective effect. If the relevant mainland Chineseauthorities suspend account opening or trading on the CIBM,the Funds' ability to invest in the CIBM will be adverselyaffected. In such event, the relevant Fund’s ability to achieveits investment objective may be negatively affected.

There is no specific written guidance from the mainlandChina tax authorities on the treatment of income tax andother tax categories payable in respect of trading in the CIBMby eligible foreign institutional investors via the BondConnect.

27. Specific risks linked to stock lending andrepurchase transactions

Stock lending and repurchase transactions involve certainrisks. There is no assurance that a Fund will achieve theobjective for which it entered into a transaction.

Repurchase transactions might expose the Fund to riskssimilar to those associated with optional or forwardderivative financial instruments, the risks of which aredescribed in other parts of this Prospectus. Stock loans may,in the event of a counterparty default or an operationaldifficulty, be recovered late and only in part, which mightrestrict the Fund's ability to complete the sale of securities orto meet redemption requests.

The Fund's exposure to its counterparty will be mitigated bythe fact that the counterparty will forfeit its collateral if itdefaults on the transaction. If the collateral is in the form ofsecurities, there is a risk that when it is sold it will realiseinsufficient cash to settle the counterparty's debt to the Fundor to purchase replacements for the securities that were lentto the counterparty. In the latter case, the Fund's tri-partylending agent will indemnify the Fund against a shortfall ofcash available to purchase replacement securities but there isa risk that the indemnity might be insufficient or otherwiseunreliable.

In the event that the Fund reinvests cash collateral in one ormore of the permitted types of investment that are describedabove, there is a risk that the investment will earn less thanthe interest that is due to the counterparty in respect of thatcash and that it will return less than the amount of cash thatwas invested. There is also a risk that the investment willbecome illiquid, which would restrict the Fund's ability torecover its securities on loan, which might restrict the Fund'sability to complete the sale of securities or to meetredemption requests.

28. Risks associated with Foreign Account TaxCompliance Act

The Fund is required to comply with extensive new reportingand withholding requirements designed to inform the USdepartment of the Treasury of US-owned foreign investmentaccounts. Failure to comply with these requirements will


subject the Fund to US withholding taxes on certain US-sourced income and gains. Shareholders may be requestedto provide additional information to the Fund to enable theFund to satisfy these obligations.

29. Private equityA Fund may gain exposure to private equity throughinvestment in transferable securities and/or regulatedcollective investment schemes which themselves invest in thisasset class. Investments in Private Equity involve a highdegree of risk and can be illiquid and highly speculative.

30. Hedge FundsA Fund may gain exposure to hedge funds throughinvestment in transferable securities and/or regulatedcollective investment schemes which themselves invest inthese asset classes. Underlying hedge funds will utilise bothexchange-traded and over-the-counter derivatives, including,but not limited to, futures, forwards, swaps, options andcontracts for differences, as part of its investment policy.These risks associated with these instruments are describedabove. The underlying hedge funds may also sell covered anduncovered options on securities. To the extent that suchoptions are uncovered, such underlying hedge funds couldincur an unlimited loss.

Underlying hedge funds may only be available forsubscription or redemption on a periodic basis (e.g.quarterly). Furthermore some such schemes may be closedfor subscription/and or redemptions, may be subject tocertain restrictions or limitations, and there is unlikely to bean active secondary market in the shares or units of suchunderlying hedge funds. Accordingly it may be difficult orimpossible for an underlying hedge fund to acquire, realiseor value its investment as and when it deems appropriate.The inability to accurately value and/or realise suchinvestments may restrict the ability of an underlying hedgefund to redeem shares or units.

31. Hedging of Share ClassesHedging transactions will be entered into whether or not theBase Currency is declining or increasing in value relative tothe Portfolio Currency. Hedged Share classes aim to provideShareholders with a return correlated to the PortfolioCurrency performance of the Fund by reducing the effect ofexchange rate fluctuations between the Base Currency andthe Portfolio Currency.

The performance of a hedged Share class may differ fromother Share classes of a Fund. This is because the return onunhedged Share classes is based on both the performance ofthe Fund’s investments and the performance of the PortfolioCurrency relative to GBP whereas the return on a hedgedShare class is based only on the performance of the Fund’sinvestments, in the event that the foreign currency exposureis successfully hedged.

Shareholders should be aware that hedging activity can onlyreduce, not eliminate, the effect of movements in exchangerates between the Base Currency and the Portfolio Currency.There is no guarantee that hedged Share classes will notsuffer adverse effects due to exchange rate fluctuations. Inparticular, Shareholders invested in hedged Share classesshould be aware that when Shares in a Fund are bought and/or sold, or Shares are switched from a hedged Share class toanother Share class in the same Fund, the necessary currencyhedging adjustments will be carried out after the Fund’svaluation point. This may lead to differences between thevaluation of the Fund’s portfolio and FX exchange rates used

to make the hedging adjustments. The volatility of theunderlying asset class may magnify the impact of anyimperfect hedging, causing the currency hedged Share classto be over or under hedged. This risk will be born byShareholders of the relevant hedged Share class.

Transaction costs arising from the hedging programme willbe borne by the relevant hedged Share class and this maynegatively impact the Share class returns. Such transactioncosts will also increase the more frequently the forwardcurrency contracts used for the purposes of hedging arerolled.

As it is not possible to legally segregate Share classes’liabilities from those of other Share classes in the same Fund,there is a risk that, in certain limited circumstances, thehedging transactions undertaken in relation to a hedgedShare class could result in liabilities which might affect thenet asset value of the other Share classes of the same Fund.

32. Potential Conflicts of InterestThe Investment Advisers and the ACD may effect transactionsin which the Investment Adviser or the ACD have, directly orindirectly, an interest which may involve a potential conflictwith each Investment Adviser’s duty to a Fund. Neither theInvestment Advisers nor the ACD shall be liable to account toa Fund for any profit, commission or remuneration made orreceived from or by reason of such transactions or anyconnected transactions nor will each Investment Adviser’sfees, unless otherwise provided, be abated.

Where a conflict cannot be avoided, the Investment Advisersand the ACD will have regard to their respective obligationsto act in the best interests of the Fund so far as practicable,having regard to their obligations to other clients, whenundertaking any investment business where potentialconflicts of interest may arise. The Investment Advisers willensure that investors in affected Funds are treated fairly andthat such transactions are effected on terms which are notless favourable to a Fund than if the potential conflict had notexisted.

The Investment Advisers and the ACD acknowledge thatthere may be some situations where the organisational oradministrative arrangements in place for the management ofconflicts of interest are not sufficient to ensure, withreasonable confidence, that risks of damage to the interestsof a Fund or its Shareholders will be prevented. Should anysuch situations arise the ACD will disclose these toShareholders in an appropriate format.

Such potential conflicting interests or duties may arisebecause the Investment Advisers or the ACD may haveinvested directly or indirectly in a Fund.

33. Risk Management, Value at Risk andLeverage

The ACD uses a risk management process to identify, analyse,evaluate and manage the risks inherent to the investmentstrategies and policies adopted by the Funds. The riskmanagement process seeks to ensure that the level of riskbeing taken is appropriate to each Fund’s objectives andpolicy and the level of complexity and sophistication of theinvestment management strategies employed.

The Schroder Multi-Asset Total Return Fund, SchroderSterling Corporate Bond Fund and Schroder Strategic CreditFund may use complex derivative strategies. The key marketrisk measure used by the ACD for these Funds is Relative VaR.As such VaR reports are produced daily based on previous


day’s closing positions. The VaR figures are calculated using a1 month holding period and 99% confidence limit. One yearof daily returns (weighted towards most recent history) isused in calculating volatility and correlation. The referenceportfolio used for Schroder Sterling Corporate Bond Fund isthe Bank of America Merrill Lynch Sterling Non-Gilt Index.Schroder Multi-Asset Total Return Fund and SchroderStrategic Credit Fund use Absolute VaR.

In using complex derivative strategies each Fund may createadditional leverage which may result in additional risk as setout above.

34. Umbrella structure of the Company andCross Liability Risk

The Funds are segregated portfolios of assets and,accordingly, the assets of a Fund belong exclusively to thatFund and shall not be used to discharge directly or indirectlythe liabilities of, or claims against, any other person or body,including the Company, or any other Fund, and shall not beavailable for any such purpose. Subject to the above, eachFund will be charged with the liabilities, expenses, costs andcharges attributable to that Fund and within each Fundcharges will be allocated as far as possible according to theNet Asset Value of that particular Share Class. Any assets,liabilities, expenses, costs or charges not attributable to aparticular Fund may be allocated by the ACD in a mannerwhich it believes is fair to the Shareholders generally. This willnormally be pro rata to the Net Asset Value of the relevantFunds.

While the provisions of the OEIC Regulations provide forsegregated liability between the Funds, the concept ofsegregated liability is relatively new. Accordingly, whereclaims are brought by local creditors in foreign courts orunder foreign law contracts, it is not yet known how thoseforeign courts will react to the segregated liability betweenthe Funds provided in the OEIC Regulations and as such it isnot certain that the assets of a Fund will be completelyinsulated from the liabilities of other Funds of the Companyin every circumstance.

35. Specific Risk relating to CollateralManagement

Counterparty risk arising from investments in OTC financialderivative instruments and securities lending transactions,repurchase agreements and buy-sell back transactions isgenerally mitigated by the transfer or pledge of collateral infavour of a Fund. However, transactions may not be fullycollateralised. Fees and returns due to the Fund may not becollateralised. If a counterparty defaults, the Fund may needto sell non-cash collateral received at prevailing marketprices. In such a case the Fund could realise a loss due, interalia, to inaccurate pricing or monitoring of the collateral,adverse market movements, deterioration in the credit ratingof issuers of the collateral or illiquidity of the market onwhich the collateral is traded. Difficulties in selling collateralmay delay or restrict the ability of the Fund to meetredemption requests.

A Fund may also incur a loss in reinvesting cash collateralreceived, where permitted. Such a loss may arise due to adecline in the value of the investments made. A decline in thevalue of such investments would reduce the amount ofcollateral available to be returned by the Fund to thecounterparty as required by the terms of the transaction. TheFund would be required to cover the difference in valuebetween the collateral originally received and the amountavailable to be returned to the counterparty, therebyresulting in a loss to the Fund.

Appendix IIThe FundsWhere a Fund's investment policy refers to investments incorporations of a particular country or region, suchreference means (in the absence of any furtherspecification) investments in companies listed, incorporated,headquartered or having their principal business activities insuch country or region.

Where a Fund's investment policy refers to investments innon-government bonds, such reference includes (in theabsence of any further specification) those issued by quasi-government, supra-national agencies and sub-sovereignissuers as well as bonds issued by corporate entities.

Where a Fund’s investment policy refers to investmentsissued in a particular currency, such reference includes (inthe absence of any further specification) investments issuedin another currency but hedged back to the specifiedcurrency.

Where a Fund states that it will invest a percentage of itsassets in a certain way (i) the percentage is indicative onlyas, for example, the ACD may adjust the Fund's exposure tocertain asset classes in response to adverse market and/oreconomic conditions and/or expected volatility, when in theACD’s view to do so would be in the best interests of theFund and its shareholders; and (ii) such assets exclude cashor other liquidities which are not used as backup forderivatives unless otherwise stated. When a Fund states thatit invests up to a maximum percentage of its assets (e.g.80%) in a certain way, such assets include cash or otherliquidities which are not used as backup for derivatives.

Where a Fund’s investment policy includes a benchmark,this has been chosen for the following reasons:

(A) for a comparator benchmark, many funds sold in the UKare grouped into sectors by the Investment Association(the “IA”, the trade body that represents UK investmentmanagers) to help investors to compare funds withbroadly similar characteristics. If the Fund is classified inany particular IA sector, this IA sector is shown as acomparator benchmark in the Fund Characteristics. TheFund may also show a comparator benchmark wherethe Investment Adviser and the ACD believe that thisbenchmark is a suitable comparison for performancepurposes.

(B) for a target benchmark that is a financial index, thebenchmark has been selected because it isrepresentative of the type of companies or other typesof interest in which the Fund is likely to invest, and it is,therefore, an appropriate target in relation to the returnthat the Fund aims to provide and as a comparator forthe Fund’s overall performance.

(C) for a target benchmark that is not a financial index, thebenchmark has been selected because the target returnof the Fund is to deliver or exceed the return of thatbenchmark as stated in the investment objective.

(D) for a constraining benchmark, the benchmark has beenselected because the Investment Adviser is constrainedby reference to the value, price or components of thatbenchmark as stated in the investment objective.


Schroder UK Opportunities FundInvestment Objective

The Fund aims to achieve capital growth and income inexcess of the FTSE All Share Gross Total Return index (afterfees have been deducted) over a three to five year period byinvesting in equity and equity related securities of UKcompanies.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in a concentrated range of equity and equity relatedsecurities of UK companies. These are companies that areincorporated, headquartered or have their principalbusiness activities in the UK. The Fund typically holds 30 to50 companies.

The Fund's approach is grounded in the belief thatsentiment drives share prices in the short term, such thatcompanies with strong long-term prospects often becomeundervalued by the market. The Investment Manager looksto invest in the undervalued companies that have scope forpositive change thereby realising the valuation anomalyover the medium to long term.

The Fund may also invest directly or indirectly in othersecurities (including in other asset classes), countries,regions, industries or currencies, collective investmentschemes (including other Schroder funds), warrants andmoney market instruments, and hold cash.

The Fund may use derivatives with the aim of reducing riskor managing the Fund more efficiently (for moreinformation please refer to Appendix III. Section 10:Derivatives and Forwards of the Prospectus).

Fund Characteristics

Classes of Shares A AccumulationC Accumulation and C IncomeD Accumulation and D IncomeS Accumulation and S IncomeZ Accumulation and Z Income

Base Currency GBP (£)

Valuation Point 12:00 p.m.

Dealing Frequency Daily

Settlement Period of Subscription andRedemption Proceeds

Within 4 Business Days from the relevant Dealing Day

Investment Adviser Schroder Investment Management Limited

Annual Accounting Date 31 December

Interim Accounting Date 30 June

Income Allocation Dates 28 February, 31 August

Profile of a Typical Investor The Fund is a higher risk fund aiming to provide capital growth. It may be suitable for investors whoare more concerned with maximising long-term returns than minimising possible short-term losses.Investors should regard their investment as medium to long-term and should read the risk warningsset out in Appendix I and the Fund's Key Investor Information Document before investing.

Benchmark The Fund’s performance should be assessed against its target benchmark, being to exceed the FTSEAll Share (Gross Total Return) index, and compared against the Investment Association UK AllCompanies sector average return. The Investment Adviser invests on a discretionary basis and is notlimited to investing in accordance with the composition of this benchmark.

Benchmark selection The target benchmark has been selected because it is representative of the type of investments inwhich the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the returnthat the Fund aims to provide.

The comparator benchmark has been selected because the Investment Adviser and the ACD believethat this benchmark is a suitable comparison for performance purposes given the Fund’s investmentobjective and policy.

Specific Fund Risk Factors These specific risk factors should be read in conjunction with the general risks of investment detailedin Appendix I.

Concentrated Portfolio Risk This Fund invests in a smaller than usual number of stocks and can invest heavily in specific types ofcompanies, sectors or regions. A fund which invests in a smaller number of stocks may fluctuate morein value than a fund that invests in a larger number of stocks as the portfolio is more concentratedand less diversified. Stock selection will drive portfolio construction, which may result in significantbiases at both a sector and regional level.


Share Class Features

Classes of Shares Minimum InitialInvestment

MinimumSubsequentInvestment

Minimum Holding Annual ManagementCharge

Initial Charge

A £1,000 £500 £1,000 1.50% 0.00%

C £25,000 1 £500 £25,000 1 1.00% 0.00%

D £150 million £1 million £1 million Up to 1.50% 0.00%

S None None None Up to 1.00% 0.00%

Z £50,000 £10,000 £50,000 0.75% 0.00%


1 For Shareholders who acquired their C Class Shares prior to the 28th September 2004, the minimum investment and minimum holding amounts are £1,000.

Schroder UK Dynamic Smaller Companies FundInvestment Objective

The Fund aims to provide capital growth in excess of theFTSE Small Cap ex Investment Trust (Gross Total Return)index (after fees have been deducted) over a three to fiveyear period by investing in equity and equity relatedsecurities of small-sized UK companies.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in equity and equity related securities of small-sizedUK companies. These are companies that are incorporated,headquartered or have their principal business activities inthe UK and, at the time of purchase, are similar in size tothose comprising the bottom 10% by market capitalisationof the UK equities market.

The Fund may also invest in companies headquartered orincorporated outside the UK which derive a significantproportion of their revenues or profits from the UK.

The small cap universe is an extensive, diverse andconstantly changing area of the UK market. Smallercompanies offer investors exposure to some niche growthareas that, often, cannot be accessed through largecompanies. They also tend to grow more rapidly than largerfirms.

The Fund may also invest directly or indirectly in othersecurities (including in other asset classes), countries,regions, industries or currencies, collective investmentschemes (including Schroder funds), warrants and moneymarket instruments, and hold cash.


Limited Issue

In addition to the circumstances specified under “Buying,Selling and Switching Shares” of this Prospectus, the ACDreserves the right to limit the issue of Shares in the SchroderUK Dynamic Smaller Companies Fund where the totalnumber of Shares that are in issue for the A, C, Z and SClasses in the Fund exceeds, or is anticipated to exceed, 350million Shares. In the event the ACD decides to exercise itsright to limit the issue of Shares in the Fund, the issue ofShares will cease from the time and date determined by theACD. In such circumstances, the ACD may scale backapplications by investors to purchase Shares as providedunder the section “Buying, Selling and Switching Shares”and will return any relevant subscription money sent, or thebalance of such monies, at the risk of the applicant andwithout interest. The ACD will issue additional Shares in theFund where, as a result of Shareholder redemptions, thenumber of Shares in issue falls below, or is anticipated to fallbelow, the current limit and where the proceeds of anysubsequent subscriptions can be invested withoutcompromising the Fund’s investment objective or materiallyprejudicing existing Shareholders.


Classes of Shares A AccumulationC Accumulation and C IncomeS Accumulation and S IncomeZ Accumulation and Z Income











Benchmark The Fund’s performance should be assessed against its target benchmark, being to exceed the FTSESmall Cap ex Investment Trust (Gross Total Return) index, and compared against the InvestmentAssociation UK Smaller Companies sector average return. The Investment Adviser invests on adiscretionary basis and is not limited to investing in accordance with the composition of thebenchmark.

Benchmark Selection The target benchmark has been selected because it is representative of the type of investments inwhich the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the returnthat the Fund aims to provide.







Initial Charge

A £1,000 £500 £1,000 1.50% 0.00%

C £25,000 1 £500 £25,000 1 1.00% 0.00%


Z £50,000 £10,000 £50,000 0.75% 0.00%



Schroder Sterling Corporate Bond FundInvestment Objective

The Fund aims to provide income and capital growth inexcess of the Bank of America Merrill Lynch SterlingCorporate & Collateralised (Gross Total Return) index (afterfees have been deducted) over a three to five year period byinvesting in fixed and floating rate securities issued by UKcompanies and companies worldwide.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in fixed and floating rate securities denominated insterling (or in other currencies and hedged back intosterling) and issued by UK companies and companiesworldwide.

The Fund may also invest in fixed and floating rate securitiesissued by governments, government agencies, and supra-nationals.

The Fund may invest up to 20% of its assets in belowinvestment grade securities (as measured by Standard &Poor’s or any other equivalent credit rating agencies) or inunrated securities.


The Fund may use derivatives with the aim of achievinginvestment gains, reducing risk or managing the Fund moreefficiently (for more information please refer to Appendix III.Section 10: Derivatives and Forwards of the Prospectus). TheFund may use leverage and take short positions.


Classes of Shares A Accumulation and A IncomeC Accumulation and C IncomeQ IncomeS Accumulation and S IncomeZ Accumulation and Z Income








Quarterly Accounting Dates 31 March, 30 June, 30 September

Income Allocation Dates 28 February, 31 May, 31 August, 30 November

Profile of a Typical Investor The Fund aims to provide income with some capital growth potential. It may be suitable for investorswho are seeking to combine income with some capital growth opportunities in the relative stability ofthe debt markets over the long term. Investors should be aware that the Fund’s value may beadversely affected in the short term in some market environments and should regard theirinvestment as medium to long-term. Investors should read the risk warnings set out in Appendix Iand the Fund's Key Investor Information Document before investing.

Benchmark The Fund’s performance should be assessed against its target benchmark, being to exceed the Bankof America Merrill Lynch Sterling Corporate & Collateralised (Gross Total Return) index, and comparedagainst the Investment Association Sterling Corporate Bond sector average return. The InvestmentAdviser invests on a discretionary basis and is not limited to investing in accordance with thecomposition of the benchmark.



Global Risk Exposure The Fund may use derivative instruments for efficient management and for specific investmentpurposes. For further information please see Appendix III. Section 10: Derivatives and Forwards. TheFund employs the relative Value-at-Risk (VaR) approach to measure its global risk exposure.

VaR Benchmark Bank of America Merrill Lynch Sterling Non-Gilt Index

Expected Level of Leverage 150%


The expected level of leverage may be higher when markets are more volatile, impacting the value ofthe derivative positions held by the Fund. See Appendix III Section 10: Derivatives and Forwards forfurther information.


All Charges Being Charged Wholly toCapital

As a result of all charges being charged wholly to capital, the distributable income may be higher, butthe capital value may be eroded which may affect future performance. The consequential increase inincome may result in an increase in Shareholder's personal income tax liability.

Investment in Lower Rated, HighYielding Debt Securities

The Fund may invest in lower rated, higher yielding debt securities, which are subject to greatermarket and credit risks than higher rated securities. Generally, lower rated securities pay higheryields than more highly rated securities to compensate investors for the higher risk. The lower ratingsof such securities reflect the greater possibility that adverse changes in the financial condition of theissuer, or rising interest rates, may impair the ability of the issuer to make payments to holders of thesecurities. Accordingly, an investment in the Fund is accompanied by a higher degree of credit riskthan is present with investments in higher rated, lower yielding securities.

Total Return Swaps The Fund will use financial derivative instruments (including total return swaps) for investmentpurposes as well as for efficient portfolio management purposes. Where the Fund uses total returnswaps, the underlying consists of instruments in which the Fund may invest according to itsInvestment Objective and Policy. Long and short positions gained through bond total return swapsmay increase exposure to credit-related risks. The gross exposure of total return swaps will notexceed 30% and is expected to remain within the range of 0% to 20% of the Net Asset Value. In certaincircumstances this proportion may be higher.





Initial Charge

A £1,000 £500 £1,000 1.00% 0.00%

C £25,000 1 £500 £25,000 1 0.75% 0.00%

Q None None None Up to 1.00% 0.00%


Z £50,000 £10,000 £50,000 0.50% 0.00%



Schroder European Recovery FundInvestment Objective

The Fund aims to provide capital growth by investing inequity and equity related securities of European companies,excluding the UK.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in equity and equity related securities of Europeancompanies, excluding the UK.

The Fund applies a disciplined value investment approach,seeking to invest in a select portfolio of companies that theInvestment Manager believes are significantly undervaluedrelative to their long-term earnings potential.

The Fund may also invest directly or indirectly in othersecurities (including in other asset classes), countries(including the UK), regions, industries or currencies,collective investment schemes (including Schroder funds),warrants and money market instruments, and hold cash.

The Fund may use derivatives with the aim reducing risk ormanaging the Fund more efficiently (for more informationplease refer to Appendix III. Section 10: Derivatives andForwards of the Prospectus).


Classes of Shares A AccumulationC Accumulation and C IncomeL Accumulation and L IncomeS Accumulation and S IncomeZ Accumulation and Z Income









Income Allocation Dates 28 February


Benchmark The Fund does not have a target benchmark. The Fund’s performance should be compared againstthe FTSE World Series Europe ex UK (Gross Total Return) index and the Investment AssociationEurope ex UK sector average return.

Benchmark Selection The comparator benchmarks have been selected because the Investment Adviser and the ACD believethat these benchmarks are suitable comparison for performance purposes given the Fund’sinvestment objective and policy.





Initial Charge

A £1,000 £500 £1,000 1.50% 0.00%

C £25,000 1 £500 £25,000 1 1.00% 0.00%

L None None None Up to 1.00% 0.00%


Z £50,000 £10,000 £50,000 0.75% 0.00%



Schroder Core UK Equity FundInvestment Objective

The Fund aims to provide capital growth and income inexcess of the FTSE All Share (Gross Total Return) index (afterfees have been deducted) over a three to five year period byinvesting in equity and equity related securities of UKcompanies.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in equity and equity related securities of UKcompanies. These are companies that are incorporated,headquartered or have their principal business activities inthe UK.




Classes of Shares A Accumulation and A IncomeC Accumulation and C IncomeS Accumulation and S IncomeZ Accumulation and Z Income











Benchmark The Fund’s performance should be assessed against the target benchmark, being to exceed the FTSEAll Share (Gross Total Return) index, and compared against the Investment Association UK AllCompanies sector average return. The Investment Adviser invests on a discretionary basis and is notlimited to investing in accordance with the composition of the benchmark.












Initial Charge

A £1,000 £500 £1,000 1.25% 0.00%

C £25,000 1 £500 £25,000 1 1.00% 0.00%


Z £50,000 £10,000 £50,000 0.625% 0.00%



Schroder UK Alpha Income FundInvestment Objective

The Fund aims to provide income and capital growth inexcess of the FTSE All Share (Gross Total Return) index (afterfees have been deducted) over a three to five year period byinvesting in equity and equity related securities of UKcompanies.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in equity and equity related securities of UKcompanies. These are companies that are incorporated,headquartered or have their principal business activities inthe UK.

‘Alpha' funds invest in companies in which the InvestmentManager has a high conviction that the current share pricedoes not reflect the future prospects for that business.




Classes of Shares A Accumulation and A IncomeC Accumulation and C IncomeL Accumulation and L IncomeS Accumulation and S IncomeZ Accumulation and Z Income



Valuation Frequency Daily







Profile of a Typical Investor The Fund is a higher risk fund aiming to provide capital growth and income. It may be suitable forinvestors who are more concerned with maximising long-term returns than minimising possibleshort-term losses. Investors should regard their investment as medium to long-term and should readthe risk warnings set out in Appendix I and the Fund's Key Investor Information Document beforeinvesting.

Benchmark The Fund’s performance should be assessed against its target benchmark , being to exceed the FTSEAll Share (Gross Total Return) index, and compared against the Investment Association UK EquityIncome sector average return. The Investment Adviser invests on a discretionary basis and is notlimited to investing in accordance with the composition of the benchmark.












Initial Charge

A £1,000 £500 £1,000 1.50% 0.00%

C £25,000 1 £500 £25,000 1 1.00% 0.00%



Z £50,000 £10,000 £50,0000 0.75% 0.00%



Schroder Strategic Credit FundInvestment Objective

The Fund aims to provide income and capital growth inexcess of 3 Month GBP LIBOR (or an equivalent referencerate) (after fees have been deducted) over a three to fiveyear period by investing in fixed and floating rate securitiesof companies in the UK and Europe but this cannot beguaranteed and your capital is at risk.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in fixed and floating rate securities denominated insterling (or in other currencies and hedged back intosterling) issued by companies in the UK and Europe. TheFund may also invest in fixed and floating rate securitiesissued by companies worldwide and by governments,government agencies and supra-nationals.

The Fund may invest more than 50% of its assets in belowinvestment grade securities (as measured by Standard &Poor’s or any other equivalent credit rating agencies) or inunrated securities.


The Fund may use derivatives with the aim of achievinginvestment gains, reducing risk or managing the Fund moreefficiently (for more information please refer to Appendix III.Section 10: Derivatives and Forwards of the Prospectus). TheFund may use leverage and take short positions.


Classes of Shares A Accumulation and A IncomeC Accumulation and C IncomeD Accumulation and D IncomeL Accumulation and L IncomeS Accumulation and S IncomeZ Accumulation and Z Income










Profile of a Typical Investor The Fund aims to provide income with some capital growth potential. It may be suitable for investorswho are seeking to combine income with some capital growth opportunities in the relative stability ofthe debt markets over the long term. Investors should be aware that the fund’s value may beadversely affected in the short term in some market environments and should regard theirinvestment as medium to long-term. Investors should read the risk warnings set out in Appendix Iand the Fund's Key Investor Information Document before investing.

Benchmark The Fund’s performance should be assessed against its target benchmark of 3 month GBP LIBOR (oran equivalent reference rate) and compared against the Investment Association Strategic Bond sectoraverage return.

Benchmark Selection The target benchmark has been selected because the target return of the Fund is to deliver or exceedthe return of that benchmark as stated in the investment objective.

The comparator benchmarks have been selected because the Investment Adviser and the ACD believethat this benchmark is a suitable comparison for performance purposes given the Fund’s investmentobjective and policy.

LIBOR In relation to any Fund that is managed with reference to LIBOR, Schroders is in the process ofassessing the potential alternatives to LIBOR and will notify investors of the decision in due course.

Global Risk Exposure The Fund may use derivative instruments for efficient management and for specific investmentpurposes. For further information please see Appendix III. Section 10: Derivatives and Forwards.

The Fund employs the absolute Value-at-Risk (VaR) approach to measure its global risk exposure.


The expected level of leverage may be higher when markets are more volatile, impacting the value ofthe derivative positions held by the Fund. See Appendix III Section 10: Derivatives and Forwards forfurther information.





Emerging Markets Risk The Fund will invest a portion of its assets in the securities of companies incorporated in or operatingin emerging markets and investors should be aware of the risks noted below in relation to the Fund’semerging market allocation.

- Controls on foreign investment and limitations on repatriation of invested capital and on the Fund’sability to exchange local currencies for sterling

- Greater price volatility, substantially less liquidity and significantly smaller market capitalisation ofsecurities markets

- Currency devaluations and other currency exchange rate fluctuations

- More substantial government intervention in the economy

- Higher rates of inflation

- Less government supervision and regulation of the securities markets and participants in thosemarkets

- Political uncertainty








Initial Charge

A £1,000 £500 £1,000 1.00% 0.00%

C £25,000 £500 £25,000 0.75% 0.00%

D £150 million £1 million £1 million Up to 1.00% 0.00%



Z £50,000 £10,000 £50,000 0.60% 0.00%


Schroder European Alpha Income FundInvestment Objective

The Fund aims to provide income and capital growth inexcess of the FTSE World Series Europe ex UK (Gross TotalReturn) index (after fees have been deducted) over a threeto five year period by investing in equity and equity relatedsecurities of European companies, excluding the UK.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in a concentrated range of equity and equity relatedsecurities of European countries, excluding the UK. TheFund typically holds 30 to 50 companies.

‘Alpha' funds invest in companies in which the InvestmentManager has a high conviction that the current share pricedoes not reflect the future prospects for that business.

The Fund may also invest directly or indirectly in othersecurities (including in other asset classes), countries(including the UK), regions, industries or currencies,collective investment schemes (including Schroder funds),warrants and money market instruments, and hold cash.

The Fund may use derivatives with the aim reducing risk ormanaging the Fund more efficiently (for more informationplease refer to Appendix III. Section 10: Derivatives andForwards of the Prospectus).


Classes of Shares A Accumulation and A IncomeC Accumulation and C IncomeC Accumulation GBP Hedged and C Income GBP HedgedL Accumulation and L IncomeS Accumulation and S IncomeS Income GBP HedgedZ Accumulation and IncomeZ Income GBP Hedged







Schroder Investment Management Limited as manager of the currency exposure of the Fund withauthority to effect FX hedging of Share classes


Quarterly Accounting Dates 31 March, 30 June, 30 September

Income Allocation Dates 28 February, 31 May, 31 August, 30 November

Profile of a Typical Investor The Fund is a higher risk fund aiming to provide capital growth and income. It may be suitable forinvestors who are more concerned with maximising long-term returns than minimising possibleshort-term losses. Investors should regard their investment as medium to long-term and should readthe risk warnings set out in Appendix I and the Fund's Key Investor Information Document beforeinvesting.

Benchmark The Fund’s performance should be assessed against the target benchmark, being to exceed the FTSEWorld Series Europe ex UK (Gross Total Return) index, and compared against the InvestmentAssociation Europe ex UK sector average return. The Investment Adviser invests on a discretionarybasis and is not limited to investing in accordance with the composition of the benchmark.








Hedged Share Classes There is no guarantee that the hedging strategy applied in hedged Share classes will entirelyeliminate the adverse effects of changes in exchange rates between the Base Currency and thePortfolio Currency.

In addition, it should be noted that hedging transactions will be entered into whether or not thecurrency of a hedged Share class is declining or increasing in value in relation to the Base Currency orPortfolio Currency or Portfolio Currencies. Hedged Share classes aim to provide investors with areturn correlated to the Portfolio Currency performance of the Fund by reducing the effect ofexchange rate fluctuations between the Base Currency and the Portfolio Currency.





Initial Charge

A £1,000 £500 £1,000 1.50% 0.00%

C £25,000 £500 £25,000 1.00% 0.00%



Z £50,000 £10,000 £50,000 0.75% 0.00%


Schroder Global Recovery FundInvestment Objective

The Fund aims to provide capital growth by investing inequity and equity related securities of companies worldwidewhich are considered to be undervalued relative to theirlong term earnings potential.

Investment Policy

The Fund is actively managed and invests at least 80% of itsassets in equity and equity related securities of companiesworldwide that have suffered a set back in either share priceor profitability, but where long term prospects are believedto be good.

The Fund applies a disciplined value investment approach,seeking to invest in a select portfolio of companies that theInvestment Manager believes are significantly undervaluedrelative to their long-term earnings potential.


The Fund may use derivative instruments for investmentpurposes as well as for efficient portfolio management (formore information please refer to Appendix III. Section 10:Derivatives and Forwards).


Classes of Shares L Accumulation and L IncomeS IncomeX AccumulationZ Accumulation and Z Income








Half-Yearly Accounting Date 30 June

Income Allocation Date 28 February


Benchmark The Fund does not have a target benchmark. The Fund’s performance should be compared againstthe MSCI World (Net Total Return) index and the Investment Association Global Equity Income sectoraverage return.

Benchmark Selection The comparator benchmark has been selected because the Investment Adviser and the ACD believethat this benchmark is a suitable comparison for performance purposes given the Fund’s investmentobjective and policy.

Specific Fund Risk Factors These specific risk factors should be read in conjunction with the general risks of investment detailedin in Appendix I.

Investment Style The Fund’s portfolio will exhibit a strongly contrarian investment style and look to take maximumadvantage of behavioural biases in global investment markets, and will likely exhibit higherinvestment volatility than global equity market indices. However, a recovery style is believed to exhibita lower than average investment risk due to the supportive valuations of the stocks in the portfolio.

Emerging Markets Risk The Fund will invest a portion of its assets in the securities of companies incorporated in or operatingin emerging markets and investors should be aware of the risks noted below in relation to the Fund’semerging market allocation.– Controls on foreign investment and limitations on repatriation of invested capital and on the

Fund’s ability to exchange local currencies for sterling– Greater price volatility, substantially less liquidity and significantly smaller market capitalisation of

securities markets– Currency devaluations and other currency exchange rate fluctuations– More substantial government intervention in the economy– Higher rates of inflation– Less government supervision and regulation of the securities markets and participants in those

markets– Political uncertainty






Initial Charge



X £25 million £10 million £25 million 0.00% 0.00%

Z £50,000 £10,000 £50,000 0.75% 0.00%


Schroder Multi-Asset Total Return FundInvestment Objective

The Fund aims to provide capital growth and income of 3month GBP LIBOR (or an equivalent reference rate) plus 4%per annum (before fees have been deducted*) over rollingthree year periods by investing in a diversified range ofassets and markets worldwide. The Fund also aims to targeta volatility (a measure of how much the Fund's returns mayvary) range of 4% - 8% over the same period. This cannot beguaranteed and your capital is at risk.

*For the target return after fees for each unit class pleasevisit the Schroder website https://www.schroders.com/en/uk/private-investor/investing-with-us/historical-ongoing-charges/.

Investment Policy

The Fund is actively managed and invests directly, orindirectly through collective investment schemes, exchangetraded funds, real estate investment trusts and closedended funds, and derivatives in equity and equity relatedsecurities, fixed and floating rate securities, commoditiesand currencies worldwide. The weightings of these holdingsare adjusted in response to changing market conditions.

The Fund may invest more than 10% of its assets incollective investment schemes (including other Schroderfunds).

The Fund may invest in below investment grade securities(as measured by Standard & Poor's or any equivalent gradeof other credit rating agencies) or in unrated securities.

The Fund may invest up to 20% of its assets in asset-backedand mortgage-backed securities.

The Fund may also invest in warrants and money marketinstruments, and may hold cash. The investment strategy ofthe Fund and its use of derivatives may lead to situationswhen it is considered appropriate that prudent levels of cashor cash equivalent liquidity will be maintained, which may besubstantial or even represent (exceptionally) 100% of theFund’s assets.

The Fund may use derivatives with the aim of achievinginvestment gains, reducing risk or managing the Fund moreefficiently (for more information please refer to Appendix III.Section 10: Derivatives and Forwards). The Fund will useleverage and take short positions.


Classes of Shares I Accumulation and I IncomeL Accumulation and L IncomeX Accumulation and X IncomeZ Accumulation and Z Income










Profile of a Typical Investor The Fund is a medium risk fund aiming to provide capital growth and income of UK 3 month LIBOR(or an equivalent reference rate) plus 4% per annum (before fees have been deducted) over rollingthree year periods by investing in a diversified range of assets and markets worldwide.

The Fund also aims to limit losses when markets fall. It may be suitable for investors who are seekingto combine income with capital growth potential offered through investment in a diversified range ofassets and markets worldwide.

Investors should be aware that the Fund’s value may be adversely affected in the short term in somemarket environments and should regard their investment as medium to long-term.

Investors should read the risk warnings set out in Appendix I and the Fund's Key Investor InformationDocument before investing.

Performance Objective Gross of Fees The Fund’s performance objective to provide capital and income of 3 month LIBOR (or an equivalentreference rate) + 4% is shown gross of the Fund’s ongoing charge (OGC). The Fund has launched arange of Share classes and the OGC will be different for each Share class. Therefore, to convert from agross of charges target to a net of charges target, the OGC should be subtracted from theperformance objective for each Share class.

For example: if the OGC for a share class is 1.00%, the performance objective for that share class willbe 3 month LIBOR + 3.00% (net of charges).

Benchmark The Fund’s performance should be assessed against its target benchmark of 3 month GBP LIBOR (oran equivalent reference rate) plus 4%.


The Fund also aims to target a volatility (a measure of how much the Fund's returns may vary) rangeof 4% - 8% over the same period.

Benchmark Selection The target benchmark has been selected because the target return of the Fund is to deliver or exceedthe return of that benchmark as stated in the investment objective.

LIBOR In relation to any Fund that is managed with reference to LIBOR, Schroders is in the process ofassessing the potential alternatives to LIBOR and will notify investors of the decision in due course.

Global Risk Exposure The Fund may use derivative instruments for efficient management and for specific investmentpurposes. For further information please see Appendix III. Section 10: Derivatives and Forwards.

The Fund employs the absolute Value-at-Risk (VaR) approach to measure its global risk exposure.


The expected level of leverage may be higher when markets are more volatile, impacting the value ofthe derivative positions held by the Fund. See Appendix III. Section 10: Derivatives and Forwards forfurther information.


Emerging Markets Risk The Fund will invest a portion of its assets in the securities of companies incorporated in or operatingin emerging markets and investors should be aware of the risks noted below in relation to the Fund’semerging market allocation.– Controls on foreign investment and limitations on repatriation of invested capital and on the

Fund’s ability to exchange local currencies for sterling– Greater price volatility, substantially less liquidity and significantly smaller market capitalisation of

securities markets– Currency devaluations and other currency exchange rate fluctuations– More substantial government intervention in the economy– Higher rates of inflation– Less government supervision and regulation of the securities markets and participants in those

markets– Political uncertainty




Commodities The Fund may invest in the J.P. Morgan Enhance Beta Index 126 Index, the Bloomberg CommodityIndex and the Bloomberg Commodity 3-Month Forward Index. These indices may have greater than20% exposure to oil and its derivatives which are highly correlated.

The J.P. Morgan Enhance Beta Index 126 Index, the Bloomberg Commodity Index and the BloombergCommodity 3-Month Forward Index are broadly diversified indices that enable exposure to adiversified group of commodities important to the world economy. The commodity relativeweightings are calculated annually by reference to both liquidity data of futures contracts andproduction data. Together these provide a balance of economic importance and economic value.

Oil’s importance to the global economy, and the heavy volume of trading explain its exceptionaldominance in the J.P. Morgan Enhance Beta Index 126 Index, the Bloomberg Commodity index andthe Bloomberg Commodity 3-Month Forward Index.

The Fund may invest in the Energy Select Sector Total Return Index. The Energy Select Sector TotalReturn Index provides exposure to large sized US Energy companies in the S&P 500 Index.






Initial Charge

I £1 million £100,000 £1 million 0.55% 0.00%



Z £50,000 £10,000 £50,000 0.625% 0.00%


Schroder India Equity FundInvestment Objective

The Fund aims to provide capital growth in excess of theMSCI India Total Return index (after fees have beendeducted) over a three to five year period by investing inequity and equity related securities of Indian companies.

Investment Policy

The Fund invests at least 80% of its assets in equity andequity related securities of Indian companies or companieswhich have their principal business activities in India.Typically, the Fund holds 30 to 70 companies.

The Fund may also invest directly or indirectly in othersecurities (including in other asset classes), countries,regions, industries or currencies, collective investmentschemes (including other Schroder funds), warrants andmoney market instruments, and hold cash.

The Fund may use derivatives with the aim of reducing riskor managing the Fund more efficiently (for moreinformation please refer to section 6 of Appendix I of theProspectus).


Classes of Shares L Accumulation

X AccumulationZ Accumulation






Investment Adviser Schroder Investment Management (Singapore) Ltd




Profile of a Typical Investor The Fund aims to provide capital growth. It may be suitable for investors who are more concernedwith maximising long-term returns than minimising possible short-term losses. Investors shouldregard their investment as medium to long-term and should read the risk warnings set out inAppendix I and the Fund's Key Investor Information Document before investing.

Benchmark The Fund's performance should be assessed against its target benchmark, being to exceed the MSCIIndia (Net Total Return) index. The Investment Adviser invests on a discretionary basis and is notlimited to investing in accordance with the composition of this benchmark.




Emerging Markets Risk The Fund will invest its assets in the securities of companies incorporated in or operating in emergingmarkets and investors should be aware of the risks noted below in relation to the Fund’s emergingmarket allocation.

─ Controls on foreign investment and limitations on repatriation of invested capital and on theFund’s ability to exchange local currencies for sterling

─ Greater price volatility, substantially less liquidity and significantly smaller market capitalisation ofsecurities markets

─ Currency devaluations and other currency exchange rate fluctuations

─ More substantial government intervention in the economy

─ Higher rates of inflation

─ Less government supervision and regulation of the securities markets and participants in thosemarkets

- Political uncertainty

Risk Factors Relating to IndustrySectors / Geographic Areas

Funds that focus on a particular industry or geographic area are subject to the risk factors and marketfactors which affect this particular industry or geographic area, including legislative changes, changesin general economic conditions and increased competitive forces. This may result in a greatervolatility of the Net Asset Value of the Shares of the relevant Fund. Additional risks may includegreater social and political uncertainty and instability; and natural disasters.

Concentrated Portfolio Risk This Fund may at times invest in a smaller than usual number of stocks and can invest heavily inspecific types of companies, sectors or regions. A fund which invests in a smaller number of stocksmay fluctuate more in value than a fund that invests in a larger number of stocks as the portfolio ismore concentrated and less diversified. Stock selection will drive portfolio construction, which mayresult in significant biases at both a sector and regional level.





Initial Charge



Z £50,000 £10,000 £50,000 0.75% 0.00%



Appendix IIIInvestment Powers andRestrictionsInvestment Restrictions

1. Transferable Securities

The investment objectives and policies of each Fund, set out in Appendix II, are subject to the limits on investment for UCITSSchemes under Chapter 5 of the FCA Rules, relevant parts of which are summarised below.

Each Fund may invest without limitation, except where otherwise specifically stated, in:

transferable securities (as defined for the purposes of the FCA Rules) that are:

(A) admitted to or dealt in on an eligible market as described under Eligible Markets below; or

(B) recently issued transferable securities provided that the terms of the issue include an undertaking that application will bemade to be admitted to an eligible market and such admission is secured within a year of issue.

(C) approved money market instruments (as defined for the purposes of COLL) admitted to or dealt in on an eligible marketand issued or guaranteed by:

(D) a central, regional or local authority or central bank of an EEA State, the European Central Bank, the European Union orthe European Investment Bank, a non-EEA State, or, in the case of a federal state, by one of the members making up thefederation, or by a public international body to which one or more EEA States belong; or

(E) an establishment subject to prudential supervision in accordance with criteria defined by European Union law or anestablishment which is subject to and complies with prudential rules considered by the FCA to be at least as stringent asthose laid down by European Union law.

Each Fund may invest up to 10% of its net asset value in aggregate in transferable securities and/or approved money marketinstruments that do not fulfil the criteria above. The property of each Fund may be invested in a transferable security only tothe extent that the transferable security fulfils the following criteria:

(A) the potential loss which the Fund may incur with respect to holding the transferable security is limited to the amount paidfor it;

(B) its liquidity does not compromise the ability of the ACD to comply with its obligation to redeem Shares at the request ofany qualifying Shareholder;

(C) reliable valuation is available for it as follows:

(1) in the case of a transferable security admitted to or dealt in on an eligible market, where there are accurate, reliableand regular prices which are either market prices or prices made available by valuation systems independent fromissuers;

(2) in the case of a transferable security not admitted to or dealt in on an eligible market, where there is a valuation on aperiodic basis which is derived from information from the issuer of the transferable security or from competentinvestment research;

(D) appropriate information is available for it as follows:

(1) in the case of a transferable security admitted to or dealt in on an eligible market, where there is regular, accurate andcomprehensive information available to the market on the transferable security or, where relevant, on the portfolio ofthe transferable security;

(2) in the case of a transferable security not admitted to or dealt in on an eligible market, where there is regular andaccurate information available to the authorised fund manager on the transferable security or, where relevant, on theportfolio of the transferable security;

(E) it is negotiable; and

(F) its risks are adequately captured by the risk management process of the ACD.

Unless there is information available to the ACD that would lead to a different determination, a transferable security which isadmitted to or dealt in on an eligible market shall be presumed not to compromise the ability of the ACD to comply with itsobligation to redeem Shares at the request of any qualifying Shareholder and to be negotiable.


A unit or share in a closed end fund shall be taken to be a transferable security for the purposes of investment by a Fund,provided it fulfils the criteria for transferable securities set out above, and either:

(A) where the closed end fund is constituted as an investment company or a unit trust, it is subject to corporate governancemechanisms applied to companies, and where another person carries out asset management activity on its behalf, thatperson is subject to national regulation for the purpose of investor protection; or

(B) where the closed end fund is constituted under the law of contract, it is subject to corporate governance mechanismsequivalent to those applied to companies, and it is managed by a person who is subject to national regulation for thepurpose of investor protection.

Eligible markets for the Funds are explained and set out under the heading “Eligible Markets for Funds” below.

2. Government and Public Securities

Each Fund may invest without limitation in transferable securities that are defined by the FCA as government and publicsecurities (GAPS). At any time, where no more than 35% of such Fund’s value is invested in GAPS issued by any one body, thereis no limit to the amount which may be invested in GAPS of any one issue.

Schroder Sterling Corporate Bond Fund, Schroder Strategic Credit Fund, Schroder Core UK Equity Fund, Schroder UK AlphaIncome Fund, Schroder Global Recovery Fund and Schroder Multi-Asset Total Return Fund may invest more than 35% in valueof its property in GAPS issued by or on behalf of or guaranteed by any one body provided that such securities have beenissued by the following bodies:-

(A) the government of the UK; or

(B) the Scottish Administration; or

(C) the Executive Committee of the Northern Ireland Assembly; or

(D) the National Assembly for Wales; or

(E) the European Investment Bank; or

(F) the government of any of the following countries or territories outside the UK:-

(1) each member State of the European Economic Area (an EEA State) other than the United Kingdom, which are Austria,Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal,Romania, Slovakia, Slovenia, Spain and Sweden; or

(2) Australia, Canada, Japan, New Zealand, Switzerland and the United States of America.

Moreover, before investing more than 35% in value of the Fund’s property in such securities, the ACD will also consult with theDepositary and as a result considers that the issuer of such securities is one which is appropriate in accordance with theobjectives of the Fund.

If a Fund invests more than 35% in value of its property in GAPS issued by any one body, no more than 30% in value of thatFund’s property may be invested in such securities of any one issue. Moreover, a Fund’s property must include such securitiesissued by that or another issuer, of at least six different issues.

In relation to such securities: issue, issued and issuer include guarantee, guaranteed and guarantor; and an issue differs fromanother if there is a difference as to repayment date, rate of interest, guarantor or other material terms of the issue.

3. Risk Management

The ACD applies a risk management process enabling it to monitor and measure at any time the risk of a Fund’s positions andtheir contribution to the overall risk profile of the property of a Fund and to the Scheme Property. This is described more fullyin the Risk section of the Prospectus.

An investor may obtain on request from the ACD details of the quantitative limits and methods used in applying the riskmanagement of each Fund as well as any recent developments in the risks and yields of the main categories of investment ofthose Funds.

4. Warrants

Except for Schroder European Alpha Income Fund, Schroder Sterling Corporate Bond Fund, Schroder Strategic Credit Fund,Schroder UK Alpha Income Fund, Schroder Global Recovery Fund; Schroder Multi-Asset Total Return Fund and Schroder IndiaEquity Fund, no more than 5% of each Fund may be invested where the transferable security or money market instrument is awarrant.Where more than 5% of a Fund is invested in warrants, this could make the relevant Fund liable to highervolatility than if its investment in warrants was limited to an upper limit of 5%. A Fund may only invest more than 5%.In warrants if this investment provision is specifically stated in its investment objective and policy.


On investment, the exposure created by the exercise of the warrant must not exceed the spread limits of a UCITS Fund.

5. Nil/Partly Paid

A transferable security or an approved money market instrument (as defined in the FCA Rules) on which any sum is unpaidmay be invested in only if it is reasonable foreseeable that the amount of any existing and potential call for any sum unpaidcould be paid by the Fund, at the time when payment is required, without contravening the other investment restrictions inthis Appendix III and the FCA Rules.

6. Collective Investment Schemes

Except for Schroder European Alpha Income Fund, Schroder Sterling Corporate Bond Fund, Schroder Strategic Credit Fund,Schroder UK Alpha Income Fund, Schroder Multi-Asset Total Return Fund and Schroder Global Recovery Fund, not more than5% in value of the property of each of the Funds may be invested in other authorised schemes or recognised schemes whichare securities funds or warrant funds or schemes constituted outside the UK which have similar characteristics to suchauthorised or recognised schemes. Such schemes may include those managed or operated by the ACD or an associate of theACD, provided that the instrument constituting such a scheme restricts investment to a particular geographic area oreconomic sector.

In the case of Schroder European Alpha Income Fund, Schroder Sterling Corporate Bond Fund, Schroder Strategic Credit Fund,Schroder UK Alpha Income Fund, Schroder Global Recovery Fund; Schroder Multi-Asset Total Return Fund and Schroder IndiaEquity Fund, each Fund may invest in units or shares of any other collective investment schemes which are:

(A) UCITS Schemes;

(B) Schemes recognised under section 270 of the Financial Services and Markets Act 2000;

(C) non-UCITS retail schemes as defined in the FCA Rules; or

(D) Schemes authorised in an EEA State provided the restrictions in Article 19(1)(e) of the UCITS Directive are met (or ifapplicable, in the UK provided that the statutory equivalent to Article 50(1)(e) of the UCITS Directive which forms part ofEnglish law by virtue of the EUWA, is met); or

(E) authorised by the competent authority of an OECD member country (other than another EEA State) which has:

(1) signed the IOSCO Multilateral Memorandum of Understanding; and

(2) approved the scheme’s management company, rules and depositary/custody arrangements provided therequirements of article 50(1)(e) of the UCITS Directive, or the statutory equivalent thereof which forms part of Englishlaw by virtue of the EUWA, (as applicable).

(provided the schemes invested in cannot themselves invest more than 10% in other collective investment schemes).

No more than 30% of the value of a Fund may be invested in other collective investment schemes within (B) to (E) above.

Each Fund may invest in units or shares of a fund managed or operated by the ACD or an associate of the ACD. Where aFund invests in collective investment schemes, such underlying investments will incur management fees and expensesincluding a periodic management charge. Certain underlying funds may also charge an initial charge and/or performance fees.Where a Fund invests in regulated collective investment schemes managed by the ACD, or its associate companies, a rebate ofthe periodic management charge will be obtained. The Schroder UK Opportunities Fund, Schroder UK Dynamic SmallerCompanies Fund, Schroder European Recovery Fund and Schroder Core UK Equity Fund may not invest more than 5% of theirrespective net asset value in units or shares of collective investment schemes. Schroder Sterling Corporate Bond Fund,Schroder Strategic Credit Fund, Schroder European Alpha Income Fund and Schroder UK Alpha Income Fund; Schroder GlobalRecovery Fund and Schroder India Equity Fund may not invest more than 10% of their respective net asset value in units orshares of collective investment schemes. Where a substantial proportion of a Fund’s Net Asset Value is invested in underlyingfunds, the maximum level of management fee that may be charged to the Fund for these underlying funds is an annualpercentage rate of 3% of their net asset value (plus value added tax, if any).

7. Approved Money Market Instruments

In the case of the Schroder European Alpha Income Fund, Schroder Sterling Corporate Bond Fund, Schroder Strategic CreditFund, Schroder UK Alpha Income Fund, Schroder Global Recovery Fund; Schroder Multi-Asset Total Return Fund and SchroderIndia Equity Fund, each Fund may invest without limitation, where this is specifically stated in its investment objective andpolicy, in approved money market instruments (as defined for the purposes of the FCA Rules). Approved money marketinstruments held within a UCITS Scheme must be (i) admitted to or dealt in on an eligible market; or (ii) the issue or the issuerof the approved money market instrument is regulated for the purpose of protecting investors and savings and the moneymarket instrument is issued or guaranteed in accordance with one of the following provisions:

(A) the approved money-market instrument is issued or guaranteed by a central, regional or local authority or central bank ofan EEA State, the European Central Bank, the European Union or the European Investment Bank, a non-EEA State or, in thecase of a federal state, by one of the members making up the federation, or by a public international body to which one ormore EEA States belong; or:


(B) the approved money-market instrument is issued or guaranteed an establishment subject to prudential supervision inaccordance with criteria defined by European Union law or an establishment which is subject to and complies withprudential rules considered by the FCA to be at least as stringent as those laid down by European Union law; or

(C) money market instruments issued by a body, any securities of which are dealt in on an eligible market.

Each Fund may invest up to 10% of its net asset value in aggregate in approved money market instruments not falling within(A) or (B) above.

Eligible markets for the Funds are explained and set out under the heading “Eligible Markets for Funds” below.

8. Deposits

In the case of Schroder European Alpha Income Fund, Schroder Sterling Corporate Bond Fund, Schroder Strategic Credit Fund,Schroder UK Alpha Income Fund, Schroder Global Recovery Fund; Schroder Multi-Asset Total Return Fund and Schroder IndiaEquity Fund, each Fund may invest in deposits without limitation, only with an approved bank and which are repayable ondemand or has the right to withdraw and maturing in no more than 12 months.

9. Cash and Near Cash

The property of Schroder Sterling Corporate Bond Fund, Schroder Strategic Credit Fund, Schroder European Alpha IncomeFund, Schroder UK Alpha Income Fund, Schroder Global Recovery Fund; Schroder Multi-Asset Total Return Fund and SchroderIndia Equity Fund may consist of cash and near cash where this may reasonably be regarded as necessary in order to enablethe pursuit of each Fund’s investment objective, redemption of shares, efficient portfolio management of the Fund in questionin accordance with its investment objective or other purposes which may reasonably be regarded as ancillary to theinvestment objective of that Fund. In the case of Schroder UK Opportunities Fund, Schroder UK Dynamic Smaller CompaniesFund, Schroder European Recovery Fund and Schroder Core UK Equity Fund the property of each Fund may not consist of cashand near cash except to the extent that it may reasonably be regarded as necessary in order to enable the redemption ofshares, management of the relevant Fund in accordance with its investment objective or other purposes which may reasonablybe regarded as ancillary to the investment objectives of that Fund. Within the context of the ACD's policy of active assetallocation the liquidity of the Funds may vary in response to market conditions.

10. Derivatives and Forwards

The ACD has the power to buy and sell derivatives and forwards both on exchange and off exchange, in all Funds to the extentpermitted by the Regulations and as set out below. Where a Fund invests in derivatives, the exposure to the underlying assetsmust not exceed the limits set out under “Spread Limits”.

The limits do not apply to index based derivatives where, provided the relevant indices composition is sufficiently diversified,the index represents an adequate benchmark for the market to which it refers and the index is published in an appropriatemanner. The underlying constituents of the index do not have to be taken into account for the purposes of the spread limits.The ACD must continue to ensure a prudent spread of risk.

A derivative or forward transaction must have an underlying consisting of any one or more of the investments permitted inthis Appendix III of the Prospectus but may also including financial indices, interest rates, foreign exchange rates, currenciesand credit default swaps.

A derivative or forward transaction which will or may lead to the delivery of the underlying asset for the account of the Fundmay be entered into only if that property can be held for the account of the Fund, and the ACD having taken reasonable caredetermines that delivery of the asset under the transaction will not occur or will not lead to a breach the FCA Rules.

Where a transferable security or approved money market instrument embeds a derivative, this must be taken into account forthe purposes of complying with the FCA Rules on derivatives and forward transactions.

When using derivatives the ACD will employ a risk management process as set out under “Risk Management”.

An investor may obtain on request from the ACD details of the quantitative limits and methods used in applying the riskmanagement of each Fund as well as any recent developments in the risks and yields of the main categories of investment ofthose Funds.

Derivatives and forward use: Efficient Portfolio ManagementFunds may use derivatives and forwards for efficient portfolio management. The aim of any derivative or forward used forsuch reasons is not to materially alter the risk profile of the Fund, rather their use is to assist the ACD in meeting theinvestment objectives of each Fund as set out in Appendix II. Efficient portfolio management involves techniques andinstruments which relate to transferable securities and approved money-market instruments and which fulfil the followingcriteria:

(A) they are economically appropriate in that they are realised in a cost effective way;

(B) they are entered into for one or more of the following specific aims:

(1) reduction of risk;


(2) reduction of cost;

(3) generation of additional capital or income for the scheme with a risk level which is consistent with the risk profile ofthe scheme and the risk diversification rules laid down in the FCA Rules.

The aim of reducing risks or costs will allow the ACD to enter into exposures on permissible assets or currencies usingderivatives or forwards as an alternative to selling or purchasing underlying assets or currencies. These exposures maycontinue for as long as the ACD considers that the use of derivatives continues to meet the original aim.

The aim of generating additional capital or income allows the ACD to write options on existing assets where it considers thetransaction will result in the Fund deriving a benefit, even if the benefit obtained results in surrendering the chance of greaterbenefit in the future.

The aim of generating additional capital allows the ACD to take advantage of any pricing imperfections in relation to theacquisition and disposal (or disposal and acquisition) of rights relating to assets the same as, or equivalent to which the Fundholds or may hold.

All Funds may use derivatives for efficient portfolio management purposes.

Using derivatives for specific investmentWhere permitted pursuant to the investment objective and policy of a Fund, each Fund may use derivatives and forwardtransactions for specific investment purposes in accordance with the rules summarised under “Derivatives and forward use:Efficient Portfolio Management” in addition to being used for efficient portfolio management. This may lead to a highervolatility in the Share price of those Funds.

The Schroder Sterling Corporate Bond Fund, Schroder Strategic Credit Fund, Schroder Global Recovery Fund and SchroderMulti-Asset Total Return Fund can use derivatives and forward transactions for efficient portfolio management and for specificinvestment purposes.

Total Return Swaps

Where specified in the investment policy, a Fund may enter into Total Return Swaps with an approved bank (as defined inCOLL). The investment policy of the Fund will specify the underlying strategy and the composition of the investment portfolioor index.

A Total Return Swap is a type of financial derivative instrument between two parties in which each party agrees to make aseries of payments to the other at regular scheduled dates, with at least one set of payments determined by the return on anagreed underlying reference asset and which include, in addition, any income generated on the reference asset (such asdividends and/or bonus shares) and credit losses. Total return swaps entered into by a Fund may be in the form of fundedand/or unfunded swaps. An unfunded swap means a swap where no upfront payment is made by the total return receiver atinception. A funded swap means a swap where the total return receiver pays an upfront amount in return for the total returnof the reference asset and can therefore be costlier due to the upfront payment requirement.

All revenue arising from total return swaps, net of direct and indirect operational costs and fees, will be returned to each Fund.There are certain risks involved in using total return swaps. Please see ‘Counterparty Risk’ and ‘Particular Risks of over-the-counter “OTC” Derivative Transactions’ in the Risk Factors section of this prospectus (Appendix I).

Derivatives dealt on exchangeAny derivative transaction entered into on-exchange must be effected on or under the rules of an eligible derivatives marketand must not cause the Fund to diverge from its investment objectives as stated in this Prospectus.

OTC derivative transactionsThe Company, may, subject to the FCA Rules, enter into off exchange (referred to as the over-the-counter market (OTC))derivative transactions.

Off-exchange derivatives (being a future, option or contract for differences) and forwards transactions must only be enteredinto if they are with a counterparty which is an eligible institution or an approved bank or which is authorised by the FCA or itshome state regulator to enter into transactions as principal off exchange. Such transactions must be on approved terms, inthat the ACD:

(A) carries out at least daily and at any other time at the request of the ACD a reliable and verifiable valuation in respect ofthat transaction corresponding to its fair value (being the amount for which an asset could be exchanged, or a liabilitysettled, between knowledgeable, willing parties in an arm's length transaction) and which does not rely only on marketquotations by the counterparty; and

(B) can enter into further transactions to sell. Liquidate or close out the transaction at any time, at a fair value;

A transaction in a OTC derivative must be:


(1) capable of reliable and verifiable valuation in that the ACD having taken reasonable care determines that, throughoutthe life of the derivative, it will be able to value the investment concerned with reasonable accuracy (a) on the basis ofan up-to-date value which the ACD and the Depositary have agreed is reliable or (b) if the value referred to in (a) is notavailable, on the basis of a pricing model which the ACD and the Depositary have agreed uses an adequate recognisedmethodology; and

(2) subject to verifiable valuation in that, throughout the life of the derivative (if the transaction is entered into)verification of the valuation is carried out by (a) an appropriate third party which is independent from thecounterparty of the derivative, at an adequate frequency and in such a way that the authorised fund manager is ableto check it; or (b) a department within the ACD which is independent from the department in charge of managing thescheme property and which is adequately equipped for such a purpose.

Daily calculation of global exposureWhen using derivatives, the ACD uses a risk management process that enables it to monitor the risk of a Fund’s derivativepositions. The Global risk exposure of a Fund is calculated daily either by means of the commitment approach or the Value-at-Risk (VaR) approach. Unless specified otherwise in Appendix II, the global exposure relating to financial derivative instrumentswill be calculated using a commitment approach. A statement will be made in Appendix II to indicate which Funds apply a VaRapproach to calculate their global exposure.

Commitment approach

The commitment approach is simply defined as the market value exposure of derivatives, after netting and hedging, notexceeding the Net Asset Value of a Fund. This is typically used on funds where derivative usage is low or funds which limit theirderivatives commitment to 100% or less of their Net Asset Value.

The global exposure relating to financial derivative instruments is calculated taking into account the current value of theunderlying assets, the counterparty risk, foreseeable market movements and the time available to liquidate the positions.

Where a Fund employs techniques and instruments including repo contracts or stock lending transactions (if permitted) inorder to generate additional leverage or exposure to market risk, the ACD must take those transactions into considerationwhen calculating global exposure.

VaR approach

VaR is a means of measuring the potential loss to a Fund due to market risk. Historical data is used in the calculation of VaR.The period used for this purpose is the observation period.

VaR reports will be produced and monitored on a daily basis based on the following criteria:

– 1-month holding period;

– 99% unilateral confidence interval;

– at least a one year effective historical observation period (250 days) unless market conditions require a shorterobservation period; and

– parameters used in the model are updated at least quarterly.

Stress testing will also be applied at a minimum of once per month.

VaR limits are set using an absolute or relative approach.

(A) Absolute VaR approach

The absolute VaR approach is generally appropriate in the absence of an identifiable reference portfolio or benchmark, forexample with absolute return funds. Under the absolute VaR approach a limit is set as a percentage of the Net Asset Valueof the Fund. The absolute VaR limit of a Fund has to be set at or below 20% of its Net Asset Value. This limit is based upona 1-month holding period and a 99% unilateral confidence interval.

(B) Relative VaR approach

The relative VaR approach is used for Funds where a VaR benchmark reflecting the investment strategy which the Fund ispursuing is defined. Under the relative VaR approach a limit is set as a multiple of the VaR of a benchmark or referenceportfolio. The relative VaR limit of a fund has to be set at or below twice the VaR of the Fund’s VaR benchmark.

Upon request, the ACD will provide further details of the quantitative limits and methods used in applying the riskmanagement of each Fund as well as any recent developments in the risk and yields of the main categories of investmentof each Fund.

Expected level of leverage

Funds quantifying global exposure using a VaR approach disclose their expected level of leverage.


The expected level of leverage is an indicator and not a regulatory limit. The Fund's levels of leverage may be higher than thisexpected level as long as the Fund remains in line with its risk profile and complies with its VaR limit.

The annual report will provide the actual level of leverage over the past period and additional explanations on this figure.

The level of leverage is a measure of (i) the derivative usage and (ii) the reinvestment of collateral in relation to efficientportfolio management transactions. It does not take into account other physical assets directly held in the portfolio of therelevant Funds. It also does not represent the level of potential capital losses that a Fund may incur. The level of leverage iscalculated as (i) the sum of notionals of all financial derivative contracts entered into by the Fund expressed as a percentage ofthe Fund's Net Asset Value and (ii) any additional leverage generated by the reinvestment of collateral in relation to efficientportfolio management transactions.

This methodology does not:

– make a distinction between financial derivative instruments that are used for investment or hedging purposes. As a resultstrategies that aim to reduce risk will contribute to an increased level of leverage for the Fund.

– allow the netting of derivative positions. As a result, derivative roll-overs and strategies relying on a combination of longand short positions may contribute to a large increase of the level of leverage when they do not increase or only cause amoderate increase of the overall Fund risk.

– take into account the derivative underlying assets' volatility or make a distinction between short-dated and long-datedassets. As a result, a Fund that exhibits a high level of leverage is not necessarily riskier than a Fund that exhibits a lowlevel of leverage.

Cover for investment in derivative and forward transactionsFunds may invest in derivatives and forward transactions as long as the exposure to which a Fund is committed by thattransaction itself is suitably covered from within its Scheme Property. Exposure will include any initial outlay in respect of thattransaction.

The ACD must ensure that its global exposure relating to derivatives and forward transactions held in a Fund does not exceedthe net value of the Scheme Property. The Fund must therefore hold Scheme Property sufficient in value or amount to matchthe exposure arising from a derivative obligation to which the Fund is committed. Cover used in respect of one transactionshould not be used for cover in respect of another transaction in derivatives or a forward transaction.

Valuation of OTC derivativesThe ACD must:

(A) establish, implement and maintain arrangements and procedures which ensure appropriate, transparent and fairvaluation or the exposures of a Fund to OTC derivatives; and

(B) ensure that the fair value of OTC derivatives is subject to adequate accurate and independent assessment.

Where the arrangements and procedures referred to above involve the performance of certain activities by third parties, theACD must comply with the requirements in SYSC 8.1.13R (Additional requirements for a management company) and COLL6.6A.4 R (4) to (6) (Due diligence requirements of AFMs of UCITS schemes).

The arrangements and procedures referred to above must be:

(A) adequate and proportionate to the nature and complexity of the OTC derivative concerned; and

(B) adequately documented.

Counterparty risk and issuer concentrationThe ACD must ensure that counterparty risk arising from an OTC derivative is subject to the limits set out above. Whencalculating the exposure of a Fund to a counterparty, the ACD must use the positive mark-to-market value of the OTCderivative contract with that counterparty.

The ACD may net the OTC derivative positions of a Fund with the same counterparty, provided they it is able legally to enforcenetting agreements with the counterparty on behalf of the Fund and those netting agreements do not apply to any otherexposures the Fund may have with that same counterparty.

The ACD may reduce the exposure of Scheme Property to a counterparty of an OTC derivative through the receipt of collateral.The ACD must take collateral into account in calculating exposure to counterparty risk in accordance with the limits in “SpreadLimits” below when it passes collateral to an OTC counterparty on behalf of a Fund. Collateral passed in accordance with theabove can be taken into account on a net basis only if the ACD is able legally to enforce netting arrangements with thiscounterparty on behalf of a Fund. In relation to the exposure arising from OTC derivatives the ACD must include any exposureto OTC derivative counterparty risk in the calculation.


The ACD must calculate the issuer concentration limits in “Spread Limits” below on the basis of the underlying exposurecreated through the use of OTC derivatives pursuant to the commitment approach.

11. Spread Limits

The following limits apply in respect of Schroder European Alpha Income Fund, Schroder Sterling Corporate Bond Fund,Schroder Strategic Credit Fund, Schroder UK Alpha Income Fund, Schroder Global Recovery Fund; Schroder Multi-Asset TotalReturn Fund and Schroder India Equity Fund:

(A) For the purposes of this section, companies included in the same group for the purposes of consolidated accounts asdefined in accordance with the Seventh Council Directive 82/349/EEC of 13 June 1983 based on Article 54(3)(g) of the Treatyon consolidated accounts (or the statutory equivalent thereof which forms part of English law by virtue of the EUWA, asapplicable) or, of companies included in the same group in accordance with international accounting standards, areregarded as a single body.

(B) Not more than 20% in value of the property of each Fund is to consist of deposits with a single body.

(C) Not more than 5% in value of the property of each Fund is to consist of transferable securities (as defined in the FCA Rules)or approved money-market instruments issued by any single body.

(D) The limit of 5% in (C) is raised to 10% in respect of up to 40% in value of the property of each Fund. Covered bonds neednot be taken into account for the purpose of applying the limit of 40%.

(E) The limit of 5% in (C) is raised to 25% in value of the property of each Fund in respect of covered bonds, provided thatwhen a Fund invests more than 5%. in covered bonds issued by a single body, the total value of covered bonds held mustnot exceed 80% in value of the property of the Fund.

(F) In applying (D) and (E), certificates representing certain securities (as defined in the FCA Rules) are to be treated asequivalent to the underlying security.

(G) The combined exposure to any one counterparty in OTC derivatives transactions, repurchase transactions and stocklending transactions must not exceed 5% in value of the property of each Fund; this limit being raised to 10% where thecounterparty is an approved bank (as defined in the FCA Rules).

(H) Not more than 20% in value of the property of each Fund is to consist of transferable securities and money-marketinstruments issued by the same group (as referred to in (A)).

(I) Not more than 20% in value of each Fund is to consist of the units or shares of any one collective investment scheme (asdefined in the FCA Rules).

(J) In applying the limits in (B), (C), (D), (F) and (G), and subject to (E) not more than 20% in value of the property of a Fund isto consist of any combination of two or more of the following:

(1) transferable securities (including covered bonds) or approved money-market instruments issued by a single body; or

(2) deposits made with a single body; or

(3) exposures from OTC derivatives transactions, repurchase transactions and stock lending transactions made with asingle body.

In applying the limits in (I) and (J) above, the exposure in respect of OTC derivative transactions, repurchase transactions andstock lending transactions may be reduced to the extent that collateral is held in respect of it if the collateral meets therelevant conditions set out in COLL.

The following limits apply in respect of Schroder UK Opportunities Fund, Schroder UK Dynamic Smaller Companies Fund,Schroder European Recovery Fund and Schroder Core UK Equity Fund:

(A) Not more than 5% in value of the property of each Fund is to consist of transferable securities (as defined in the FCA Rules)issued by any one issuer.

(B) In applying the limits in (A), certificates representing certain securities (as defined in the FCA Rules) are to be treated asequivalent to the underlying security.

(C) The figure of 5% in (A) may be increased to 10% in respect of up to 40% of the value of the property of each Fund.

None of the limits set out in “Derivatives and forward use: Efficient Portfolio Management” and “Using derivatives for specificinvestment” above apply to government and public securities, as to which see section 2 above.


12. Significant Influence

The Company must not acquire transferable securities issued by a body corporate and carrying rights to vote (whether or noton substantially all matters) at a general meeting of that body corporate if immediately before the acquisition, the aggregateof any such securities held by the Company gives the Company power to influence significantly the conduct of business of thatbody corporate; or the acquisition gives the Company that power.

The Company is to be taken to have power significantly to influence the conduct of business of a body corporate if it can,because of the transferable securities held by it exercise or control the exercise of 20% or more of the voting rights in thatbody corporate (disregarding for this purpose any temporary suspension of voting rights in respect of the transferablesecurities of that body corporate).

13. Concentration

The Company:

– Must not acquire transferable securities (other than debt securities) which do not carry a right to vote on any matter at ageneral meeting of the body corporate that issued them and represent more than 10% of those securities issued by thatbody corporate;

– Must not acquire more than 10% of the debt securities issued by any single body;

– Must not acquire more than 25% of the units or shares of a single collective investment scheme;

– Must not acquire more than 10% of the approved money market instruments issued by any single body.

However, the Company need not comply with the above stated limits if, at the time of acquisition, the net amount in issue ofthe relevant investment cannot be calculated.

– Each of the Schroder UK Opportunities Fund, Schroder UK Dynamic Smaller Companies Fund, Schroder European RecoveryFund and Schroder Core UK Equity Fund must not hold more than 10% of the units or shares in a collective investmentscheme.

14. Borrowing

The Company may, subject to the FCA Rules, borrow money from an eligible institution or an approved bank for the use ofeach Fund on terms that the borrowing is to be repayable out of the property of the Fund.

Borrowing must be on a temporary basis, must not be persistent and in any event must not exceed three months without theprior consent of the Depositary which may be given only on such conditions as appear appropriate to the Depositary to ensurethat the borrowing does not cease to be on a temporary basis. The ACD must ensure that borrowing does not, on any BusinessDay, exceed 10% of the value of the property of each Fund.

These borrowing restrictions do not apply to “back to back” borrowing for currency hedging purposes, i.e. borrowingpermitted in order to reduce or eliminate risk arising by reason of fluctuations in exchange rates.

15. Stocklending and repurchase agreements

Each Fund may enter into repurchase transactions and stock lending transactions, however, as at the date of this Prospectusthe ACD has not engaged in stocklending transactions or repurchase transactions on behalf of the Funds. Should any Fund usesuch techniques and instruments defined under items "Securities and Cash Lending" and "Repurchase Agreements" in thefuture, the ACD will comply with the applicable regulations and in particular Regulation (EU) 2015/2365 of 25 November 2015on transparency of securities financing transactions and of reuse or the statutory equivalent thereof which forms part ofEnglish law by virtue of the EUWA, as applicable) (the SFT Regulation) and all the information required by the applicable SFTRegulation will be available upon request at the registered office of the Company. The Prospectus will be updated prior to theuse of any such techniques and instruments.

Repurchase agreements consist of transactions governed by an agreement whereby a party sells securities or instruments to acounterparty, subject to a commitment to repurchase them, or substituted securities or instruments of the same description,from the counterparty at a specified price on a future date specified, or to be specified, by the transferor. Such transactions arecommonly referred to as repurchase agreements for the party selling the securities or instruments, and reverse repurchaseagreements for the counterparty buying them.

Securities lending transactions consist in transactions whereby a lender transfers securities or instruments to a borrower,subject to a commitment that the borrower will return equivalent securities or instruments on a future date or when requestedto do so by the lender.

There are certain risks involved in entering into repurchase transactions and stock lending transactions. Please see inparticular those set out in the risk section of this Prospectus (Appendix I). These risks may expose investors to an increasedrisk of loss. Please also note that certain potential conflicts of interests may arise in relation to efficient portfolio managementtechniques as detailed under “Conflicts of Interest” section in Appendix IV.


All the revenues arising from repurchase transactions and stock lending transactions shall be returned to the relevant Fundfollowing the deduction of any direct and indirect operational costs and fees arising. Such direct and indirect operational costsand fees, which shall not include hidden revenue, shall include fees and expenses payable to counterparties and/or stocklending agents and will be at normal commercial rates (including any applicable VAT).

To the extent permitted by and within the limits prescribed by COLL relating to the use of financial techniques and instruments(as may be amended, supplemented or replaced from time to time) and the ESMA Guidelines on ETFs and other UCITS issues(to the extent applicable), each Fund may enter as buyer or seller into repurchase transactions and engage in securitieslending transactions for the purpose of generating additional capital or income or for reducing its costs or risks.

In respect of repurchase transactions, a Fund will, on a daily basis, receive from or post to, its counterparty collateral of a typeand market value sufficient to satisfy the requirements of the Regulations.

In respect of securities loans, a Fund will ensure that on a daily basis it receives or posts to its counterparty collateral of at leastthe market value of the securities lent. Such collateral must be in the form of cash or securities that satisfy the requirements ofthe Regulations.

A Fund must have the right at any time to require the return of any security it has lent out or to terminate any securitieslending agreement it has entered into.

A Fund that enters into a repurchase transaction as buyer shall ensure that it is able to recall the full amount of cash or toterminate the reverse repurchase transaction at any time.

A Fund that enters into a repurchase transaction as seller shall ensure that it is able to recall any securities sold under thetransaction or to terminate the transaction at any time.

Fixed-term repurchase transactions that do not exceed seven days shall be considered as arrangements on terms that allowthe assets to be recalled at any time by the Fund.

Each Fund shall ensure that the level of its exposure to repurchase transactions are such that it is able to comply at all timeswith its redemption obligations.

16. General power to accept or underwrite placings

Any power in Chapter 5 of COLL to invest in transferable securities may be used by the ACD for the purpose of entering intoany agreement or understanding which is an underwriting or sub-underwriting agreement, or which contemplates thatsecurities will or may be issued, subscribed for or acquired for the account of a Fund.

The ACD may only engage in such an agreement or understanding in relation to securities which the relevant Fund couldotherwise invest in directly in accordance with the investment objective and policies of the Fund and subject to the limits oninvestment set out in Appendix II.

This ability does not apply to an option, or a purchase of a transferable security which confers a right to subscribe for oracquire a transferable security, or to convert one transferable security into another.

The exposure of a Fund to agreements and understandings as set out above, on any Business Day be covered and be suchthat, if all possible obligations arising under them had immediately to be met in full, there would be no breach of any of theinvestment limits in Chapter 5 of COLL or as otherwise set out in this section.

17. ACD’s Policy on Collateral and Management of Collateral

Where a Fund enters into OTC financial derivative transactions, stock lending or repurchase transactions (whether as buyer orseller), all collateral used to reduce counterparty risk exposure should comply with the following criteria:

(A) Liquidity: Any collateral received other than cash shall be liquid and traded on a regulated market or multilateral tradingfacility with transparent pricing in order that it can be sold quickly at a price that is close to pre-sale valuation. Collateralreceived shall also comply with the provisions set out in section 12 “Concentration” below.

(B) Valuation: Collateral received shall be valued in accordance with the rules described under the section "Calculation of NetAsset Value" on at least a daily basis. Assets that exhibit high price volatility shall not be accepted as collateral unlesssuitably conservative haircuts are in place.

(C) Issuer credit quality: The collateral received shall be of a high credit quality.

(D) Correlation: Collateral should be issued by an entity that is independent from the counterparty and is expected not todisplay a high correlation with the performance of the counterparty.

(E) Diversification: Collateral should be sufficiently diversified in terms of country, markets and issuers.

(F) Immediately available: Collateral received must be capable of being fully enforced by the Fund at any time withoutreference to or approval from the counterparty.


Collateral will be valued, on a daily basis, using available market prices and taking into account appropriate haircuts which willbe determined for each asset class based on the haircut policy adopted by the ACD. In accordance with the collateral policy ofthe Funds, and subject to the above criteria, collateral received by the Funds must be in the form of one of or more of thefollowing:

(A) cash;

(B) a certificate of deposit;

(C) a letter of credit;

(D) a readily realisable security;

(E) commercial paper with no embedded derivative content; and

(F) a money-market fund as defined in Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June2017 on money market funds, once applicable (or the statutory equivalent thereof which forms part of English law byvirtue of the EUWA, as applicable)

Without limiting the above, it is anticipated that collateral received by the Funds shall predominantly be in cash andgovernment bonds.

Where there is a title transfer, the collateral received shall be held by the Depositary, or its agent. For other types of collateralarrangement (i.e. where there is no title transfer), the collateral can be held by a third party custodian which is subject toprudential supervision, and which is unrelated to the provider of the collateral.

Non-cash collateral received cannot be sold, re-invested or pledged.

Cash collateral shall only be:

– placed on deposit with entities as prescribed in section * “Deposits” above;

– invested in high-quality government bonds;

– used for the purpose of reverse repurchase transactions provided the transactions are with credit institutions subject toprudential supervision and the Fund is able to recall at any time the full amount of cash on accrued basis;

– a money-market fund as defined in Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June2017 on money market funds, once applicable (or the statutory equivalent thereof which forms part of English law byvirtue of the EUWA, as applicable).

Re-invested cash collateral shall be diversified in accordance with the diversification requirements applicable to non-cashcollateral.

While re-invested cash is required to be diversified and may only be re-invested in the manner set out above, there remains arisk that the value of the asset invested in using cash collateral received by the Fund falls below the amount required to bereturned to the cash collateral provider. Any shortfall will be borne by the Fund causing loss to the Fund and consequentlyinvestors.

18. Haircut Policy

The ACD, on behalf of each Fund, has established a haircut policy in respect of each class of assets received as collateral. Ahaircut is a discount applied to the market value of a collateral asset to account for the fact that its valuation, or liquidityprofile, may deteriorate over time. The haircut, therefore, provides a ‘risk cushion’. The haircut policy takes account of thecharacteristics of the relevant asset class, including the credit standing of the issuer of the collateral, the price volatility of thecollateral and the results of any stress tests which may be performed in accordance with the collateral management policy.Subject to the framework of agreements in place with the relevant counterparty, which may or may not include minimumtransfer amounts, it is the intention of the ACD in respect of the Funds that any collateral received shall have a value, adjustedin light of the haircut policy, which equals or exceeds the relevant counterparty exposure where appropriate.

Eligible Collateral Remaining Maturity Haircut

Cash N/A 0%


Eligible Collateral Remaining Maturity Haircut

Government Bonds One year or under 2%

More than one year up to and including fiveyears

3%

More than five years up to and including tenyears

5%

More than ten years up to and includingthirty years

7%

More than thirty years up to and includingforty years

10%

More than forty years up to and includingfifty years

13%

19. Exchange Traded Funds

Investment may be made by each Fund in exchange traded funds (ETFs). The ACD will consider each investment in ETFs on anindividual basis to determine how the investment should be categorised. Generally, an investment in open ended ETFs will becategorised as an investment in collective investment schemes and any investment in closed ETFs will be categorised as aninvestment in transferable securities.

20. Other Investment Restrictions

In the event that one of the Funds invests in or disposes of shares or units in another collective investment scheme managedor operated by the ACD or an associate of the ACD, the ACD shall be under a duty to make the payments referred to in Rule5.2.16 of the FCA Rules.

21. Interests in Immovable and Tangible Movable Property

The Company will not have any direct interest in any immovable property (for example its office) or tangible movable property(for example its office equipment).

Eligible Markets For FundsIn order to qualify as an approved security, the market upon which securities are admitted to or dealt must, with certainexceptions permitted under COLL regulations, meet certain criteria as laid down in COLL.

Eligible Markets include any market established in a member state of the European Union or the European Economic Area (anEEA State) on which transferable securities admitted to official listing in the member state are dealt in or traded. It alsoincludes Multilateral Trading Facilities (MTFs) operating in the EU which operates regularly and are open to the public. In thecase of all other markets, in order to qualify as an eligible market, the ACD, after consultation with the Depositary, must besatisfied that the relevant market; (A) is regulated; (B) operates regularly; (C) is recognised; (D) is open to the public; (E) isadequately liquid and (F) has adequate arrangements for unimpeded transmission of income and capital to investors.

The ACD, after consultation with the Depositary, has decided that the following securities exchanges are eligible markets in thecontext of the investment policy of the Funds.

Regional

Europe Those markets established in a member state on which transferable securities admitted to officiallisting in a member state are dealt in or traded.

The market organised by the International Capital Markets Association (ICMA)

Country

Australia Australian Securities Exchange

Brazil BM&F BOVESPA and Bolsa De Valores De Rio de Janerio

Canada Toronto Stock Exchange and TSX Venture Exchange

China Shanghai Stock Connect

Hong Kong Hong Kong Stock Exchange and GEM (Growth Enterprise Market)

Hong Kong Stock Connect

Hong Kong Bond Connect

India Bombay (Mumbai) Stock Exchange and National Stock Exchange


Indonesia Indonesian Stock Exchange

Israel Tel Aviv Stock Exchange

Japan The stock exchanges in Fukuoka, Nagoya, Sapporo, Osaka and Tokyo, JASDAQ (and Mothers Marketsections of Tokyo Stock Exchange)

Korea Korea Exchange and KOSDAQ

Malaysia Bursa Malaysia

Mexico Mexican Stock Exchange

New Zealand New Zealand Stock Exchange

Peru Lima Stock Exchange

Philippines Philippines Stock Exchange

Saudi Arabia Tadawul Exchange

Singapore Singapore Exchange

South Africa Johannesburg Stock Exchange

Sri Lanka Colombo Stock Exchange

Switzerland SIX Swiss Exchange including the former exchange SWX Europe

Taiwan Taipei Exchange and Taiwan GreTai Securities Market

Thailand Stock Exchange of Thailand

Turkey Istanbul Stock Exchange

UK Those markets established in the UK on which transferable securities admitted to official listing in theUK are dealt in or traded, including LSE and AIM

USA The NASDAQ Global Select Market, The NASDAQ Global Market and The NASDAQ Capital Market –collectively the NASDAQ Stock Market (the electronic inter-dealer quotation system of Americaoperated by the National Association of Securities Dealers Inc)

Any exchange registered with the Securities and Exchange Commission as a national stock exchangeincluding Chicago Stock Exchange, NASDAQ OMX BX, NASDAQ OMX PHLX, National Stock Exchange,NYSE Euronext, NYSE Amex and NYSE Arca

The market in transferable securities issued by or on behalf of the Government of the United States ofAmerica conducted through those persons for the time being recognised and supervised by theFederal Reserve Bank of New York and known as primary dealers

The Over-the-Counter Market regulated by the National Association of Securities Dealers Inc

FINRA Trade Reporting and Compliance Engine (TRACE)

Derivatives

Australia ASX Trade24

Belgium NYSE Euronext Brussels

Brazil BM&FBOVESPA

Canada Montreal Exchange

Columbia Bolsa De Valores

France NYSE Euronext, Paris

Germany Eurex

Hong Kong Hong Kong Futures Exchange

India National Stock Exchange

Italy Borsa Italiana (Italian Derivatives Market)

Japan Osaka Stock Exchange, Tokyo Stock Exchange, Tokyo Financial Exchange

Korea Korea Exchange

Mexico Mercado Mexicano de Derivados

Netherlands NYSE Eu

ronext, Amsterdam


Poland Warsaw Stock Exchange

Russia The Moscow Exchange

Singapore Singapore Exchange

South Africa Johannesburg Stock Exchange

Spain MEFF Renta Variable (Madrid)

Sweden Nasdaq OMX, Stockholm and NASDAQ OMX Nordic

Switzerland Eurex

Taiwan Taiwan Futures Exchange

Turkey Turkish Derivatives Exchange

UK ICE Futures Exchange

USA CME Group (including Chicago Board of Trade (CBOT), Chicago Mercantile Exchange (CME), COMEX,New York Mercantile Exchange (NYMEX)), Chicago Board Options Exchange (CBOE), CBOE FuturesExchange (CFE), ICE Futures US Inc, NASDAQ OMX Futures Exchange (NFX), Eris Exchange.


Appendix IVManagement, Distribution andAdministrationAuthorised Corporate DirectorThe Authorised Corporate Director ACD of the Company isSchroder Unit Trusts Limited, a company incorporated inEngland and Wales on 2 April 2001 and authorised by the FCAwith effect from December 2001. The ACD is ultimately awholly owned subsidiary of Schroders plc which isincorporated in England and Wales.

Registered Office:

1 London Wall Place,London EC2Y 5AU

Share Capital:

Issued £9,000,001Paid up £9,000,001

Directors:

P. ChislettC. Minio PaluelloJ. RainbowS. ReedyC. ThomsonP. TruscottH. Williams

None of the above is engaged in any significant businessactivity which is not connected with the business of the ACDor any of its Associates.

The ACD is responsible for managing and administering theCompany’s affairs in compliance with the FCA Rules. The ACDhas delegated to JP Morgan Europe Limited the maintenanceof accounting records, the preparation of financialstatements and the calculation of the prices of Shares andthe preparation of tax returns. The ACD has delegated themaintenance of the Register of Shareholders to DST FinancialServices International Limited.

Regulatory status

The ACD is authorised and regulated by the FCA. AuthorisedUnit Trusts and Open-ended Investment Companies forwhich the ACD acts as Manager or ACD (as applicable) is setout in Appendix VI.

Terms of Appointment

The ACD was appointed by an agreement dated 24 March2014 between the Company and the ACD (the ACDAgreement). The ACD Agreement provides that theappointment of the ACD is for an initial period of three yearsand thereafter may be terminated upon 12 months’ writtennotice by either the ACD or the Company, although in certaincircumstances the ACD Agreement may be terminatedforthwith by notice in writing by the ACD to the Company orthe Depositary, or by the Depositary or the Company to theACD. Termination cannot take effect until the FCA hasapproved the appointment of another authorised corporatedirector in place of the retiring ACD.

The ACD is entitled to its pro rata fees and expenses to thedate of termination and any additional expenses necessarilyrealised in settling or realising any outstanding obligations.No compensation for loss of office is provided for in the ACDAgreement. The ACD Agreement provides indemnities to theACD other than for matters arising by reason of fraud or byvirtue of its negligence, wilful default, breach of duty orbreach of trust in the performance of its duties andobligations.

The ACD will reimburse the Company for any profit it makeson the issue or re-issue of Shares or cancellation of Shareswhich it has redeemed. The fees to which the ACD is entitledare set out in the section entitled “ACD's Charges andExpenses”.

The ACD has established remuneration policies for thosecategories of staff, including senior management, risk takers,control functions, and any employees receiving totalremuneration that takes them into the same remunerationbracket as senior management and risk takers whoseprofessional activities have a material impact on the riskprofiles of the ACD, that:

– are consistent with and promote sound and effective riskmanagement and do not encourage risk taking which isinconsistent with the risk profiles of the Funds; and

– are in line with the business strategy, objective valuesand interests of the ACD and which do not interfere withthe obligation of the ACD to act in the best interests ofthe Funds.

Schroders has an established Remuneration Committeeconsisting of independent non-executive directors ofSchroders plc. The Committee met four times during 2018.Their responsibilities include recommending to the board ofSchroders plc the Schroders group policy on directors’remuneration, overseeing the remuneration governanceframework and ensuring that remuneration arrangementsare consistent with effective risk management. The role andactivities of the Committee and their use of advisers arefurther detailed in the Remuneration Report and theCommittee’s Terms of Reference (both available on theSchroders group website).

The ACD delegates responsibility for determiningremuneration policy to the Remuneration Committee ofSchroders plc. The ACD defines the objectives of each Fund itmanages and monitors adherence to those objectives andconflict management. The Remuneration Committee receivesreports from the ACD regarding each Fund’s objectives, risklimits and conflicts register and the performance againstthose measures. The Remuneration Committee receivesreports on risk, legal and compliance matters from the headsof those areas in its consideration of compensationproposals, which provides an opportunity for any materialconcerns to be escalated.

A summary of the remuneration policy of the ACD andrelated disclosures is at www.schroders.com/remuneration-disclosures. A paper copy is available free of charge uponrequest.

Investment ManagementThe ACD has delegated the investment management of theCompany to


– Schroder Investment Management Limited; and

– Schroder Investment Management (Singapore) Ltd. (theInvestment Advisers),

The ACD and the Investment Advisers are subsidiarycompanies of Schroders plc.

Schroder Investment Management Limited

Schroder Investment Management Limited is a companyincorporated in England and Wales, whose registered officeand principal place of business is at 1 London Wall Place,London, EC2Y 5AU. Schroder Investment ManagementLimited is authorised and regulated by the FCA.

Schroder Investment Management (Singapore) Ltd

Schroder Investment Management (Singapore) Ltd is acompany incorporated in Singapore whose registered officeand principal place of business is 138 Market Street #23-01Capita Green, Singapore 04894646. Schroder InvestmentManagement (Singapore) Ltd is authorised to carry oninvestment business by the Monetary Authority of Singapore.

The ACD is also the manager of Authorised Unit Trusts andACD of Open-Ended Investment Companies as set out inAppendix VI.

Terms of Agreement with the Investment Advisers

The appointment of the Investment Advisers ha been madeunder agreements between the ACD and the InvestmentAdvisers. The Investment Advisers have full discretionarypowers over the investment of the property of the Companysubject to the overall responsibility and right of veto of theACD. The agreements between the ACD and the InvestmentAdvisers are terminable on two months’ notice by eitherparty thereto or without notice in the event of a materialbreach for 30 days or more by the other party and in certaininsolvency or similar events. The agreements between theACD and Investment Advisers may also be terminated withimmediate effect when this is in the interests ofShareholders.

Principal Activities of the Investment Advisers

The principal activities of the Investment Advisers are fundmanagement and investment advice. The InvestmentAdvisers are authorised to deal on behalf of the Company.The Investment Advisers shall be entitled to receive for itsown account by way of remuneration for its services a fee ofsuch amount and payable on such basis as shall be agreed inwriting from time to time between the parties.

The Depositary and CustodianThe Company’s depositary is J.P. Morgan Europe Limited, acompany limited by shares, incorporated in England andWales on 18 September 1968. Its registered office is at 25Bank Street, Canary Wharf, London E14 5JP and its principalplace of business is at Chaseside, Bournemouth BH7 7DA.The ultimate holding company of the Depositary is JP MorganChase & Co which is incorporated in Delaware, USA.

The Depositary has appointed JPMorgan Chase Bank, N.A(Local Branch) as the custodian of the Scheme Property. TheDepositary is entrusted with the safekeeping of each Fund'sassets. For the financial instruments which can be held incustody, they may be held either directly by the Custodian or,to the extent permitted by applicable laws and regulations,through every third-party custodian/sub-custodian providing,in principle, the same guarantees as the Custodian itself to be

a financial institution subject to the rules of prudentialsupervision considered as equivalent to those provided by EUlegislation. The Depositary also ensures that each Fund'scash flows are properly monitored, and in particular that thesubscription monies have been received and all cash of aFund has been booked in the cash account in the name of theFund or the Custodian on behalf of the Fund.

All cash, securities and other assets constituting the assets ofa Fund shall be held under the control of the Depositary onbehalf of the Fund and its Shareholders. The Depositary shallensure that the issue and redemption of Shares in a Fundand the application of the Fund's income are carried out inaccordance with the provisions of UK law and the Instrumentof Incorporation, and the receipt of funds from transactionsin the assets of the Fund are received within the usual timelimits. In addition, the Depositary shall:

(A) ensure that the sale, issue, repurchase, redemption andcancellation of the Shares of a Fund are carried out inaccordance with the Regulations and the Instrument ofIncorporation;

(B) ensure that the value of the Shares of a Fund iscalculated in accordance with the Regulations and theInstrument of Incorporation;

(C) carry out the instructions of the Company, unless theyconflict with UK law or the Instrument of Incorporation;

(D) ensure that in transactions involving a Fund’s assets anyconsideration is remitted to a Fund within the usual timelimits; and

(E) ensure that a Fund’s income is applied in accordancewith the Regulations and the Instrument ofIncorporation.

The Depositary regularly provides the ACD with a completeinventory of all assets of the Funds.

The Depositary may, subject to certain conditions and inorder to more efficiently conduct its duties, delegate part orall of its safekeeping duties over a Fund's assets includingbut not limited to holding assets in custody or, where assetsare of such a nature that they cannot be held in custody,verification of the ownership of those assets as well asrecord-keeping for those assets, to one or more third-partydelegates appointed by the Depositary from time to time.

The Depositary shall exercise due skill, care and diligence inchoosing and appointing the third-party delegates and in theperiodic review and ongoing monitoring of any such third-party delegates and of the arrangements of the third party inrespect of the matters delegated to it.

The liability of the Depositary shall not be affected by the factthat it has entrusted all or some of a Fund's assets in itssafekeeping to such third-party delegates.

In the case of a loss of a financial instrument held in custody,the Depositary shall return a financial instrument of anidentical type or the corresponding amount to a Fundwithout undue delay, except if such loss results from anexternal event beyond the Depositary's reasonable controland the consequences of which would have beenunavoidable despite all reasonable efforts to the contrary.

A list of the third party delegates appointed by the Depositarycan be obtained from the ACD on request.

The amounts paid to the Depositary and Custodian will beshown in each Fund’s report and accounts.


Conflicts of Interest

As part of the normal course of global custody business, theDepositary may from time to time have entered intoarrangements with other clients, funds or other third partiesfor the provision of safekeeping, fund administration orrelated services. Within a multi-service banking group such asJPMorgan Chase Group, from time to time conflicts may arise(i) from the delegation by the Depositary to its safekeepingdelegates or (ii) generally between the interests of theDepositary and those of its investors or the ACD; for example,where an affiliate of the Depositary is providing a product orservice to a fund and has a financial or business interest insuch product or service or receives remuneration for otherrelated products or services it provides to the funds, forinstance foreign exchange, securities lending, pricing orvaluation, fund administration, fund accounting or transferagency services. In the event of any potential conflict ofinterest which may arise during the normal course ofbusiness, the Depositary will at all times have regard to itsobligations under applicable laws including Article 25 of theUCITS V Directive.

Up-to-date information regarding the description of theDepositary’s duties and of conflicts of interest that may arisetherefrom as well as from the delegation of any safekeepingfunctions by the Depositary will be made available toinvestors on request at the ACD's registered office.

Regulatory Status

The principal business activity of the Depositary is acting asdepositary and trustee of collective investment schemes. TheDepositary is authorised and regulated by FCA.

Terms of Appointment

The Depositary provides its services under the terms of aDepositary Agreement between the Company and theDepositary (the Depositary Agreement) which may beterminated by 60 days’ notice given by either the Company orthe Depositary, provided that if the Depositary serves noticeto retire, the Company shall use its best endeavours to find aduly qualified replacement for the Depositary until whichtime the Depositary shall continue as Depositary and theeffective date of termination shall be extended accordingly. Ifno such person has been appointed to replace the Depositarywithin nine months of the date of such notice the Companyshall be wound up in accordance with the provisions of itsInstrument of Incorporation. Subject to the FCA Rules, theDepositary has full power to delegate (and authorise its sub-delegates to sub-delegate) all or any part of its duties asDepositary. The Depositary has delegated to JPMorgan ChaseBank, N.A. the custody of the Scheme Property. TheDepositary is entitled to the fees, charges and expensesdetailed under “Depositary’s Charges and Expenses”.

The Depositary Agreement contains indemnities by theCompany in favour of the Depositary and its affiliatedcompanies against (other than in certain circumstances) allcosts (including without limitation, all reasonable legal,professional and other expenses), charges, losses andliabilities brought against, suffered or incurred by theDepositary or its affiliated companies in the execution orexercise of the Depositary’s duties, powers, authorities anddiscretions under the Depositary Agreement.

Provision of Fund Accounting andAdministrative ServicesThe ACD employs J.P. Morgan Europe Limited to provide fundaccounting and certain administration services to each Fund.

The AuditorsThe auditors of the Company are PricewaterhouseCoopersLLP, Atria One, 144 Morrison Street, Edinburgh, EH3 8EX.

GeneralThe Company, the ACD and the Depositary must each complywith the relevant requirements of the FCA Rules in a timelymanner unless delay is lawful and also in the interests of theCompany.

The ACD and the Depositary may retain the services of theother, or of third parties, to assist them in fulfilling theirrespective roles. However:

(A) the Depositary may not delegate oversight of theCompany to the Company, the ACD or any associate ofthe Company or of the ACD, or custody or control of theScheme Property to the Company or the ACD; and

(B) any delegation of custody of the Scheme Property mustbe under arrangements which allow the custodian torelease documents into the possession of a third partyonly with the Depositary’s consent.

Where functions are performed by third parties, the ACDremains responsible for the management of the SchemeProperty and if the third party is an associate, any otherfunctions which are within the role of the ACD.

Conflicts of Interest

The FCA Rules contain various requirements relating totransactions entered into between the Company and theACD, any investment adviser or any associate of them whichmay involve a conflict of interest. These are designed toprotect the interests of the Company. Certain transactionsbetween the Company and the ACD, or an associate of theACD, may be voidable at the instance of the Company incertain circumstances.

The ACD, and other companies connected with Schroder plcmay, from time to time, act as investment managers oradvisers to other funds which follow similar investmentobjectives to those of the Funds of the Company. It istherefore possible that the ACD and/or other companiesconnected with Schroder plc may, in the course of theirbusiness, have potential conflicts of interest with theCompany or a particular Fund. The ACD will, however, haveregard in such event to its obligations under its Agreementwith the Company and, in particular, to its obligation to act inthe best interests of the Company so far as is practicable,having regard to its obligations to other clients whenundertaking any investment where potential conflicts ofinterest may arise.

The ACD is under no obligation to account to the Depositaryor to the participants in any of the Funds for any profits orbenefits it makes or receives that are derived from or inconnection with dealing in Shares, any transaction in theProperty of a Fund or the supply of services to the Company,and accordingly will not do so.

The Depositary may, from time to time, act as the depositaryof other investment companies with variable capital.


Appendix VGeneral InformationRegister of ShareholdersThe Register may be inspected without charge by anyShareholder, or his duly authorised agent, during normalbusiness hours at that administrative address of the TransferAgent as given in the Directory.

Copies of the entries in the Register relating to a Shareholderare available on request by that Shareholder without charge.The Company has the power to close the Register for anyperiod or periods not exceeding 30 days in any one year.

Restrictions and Compulsory Transfer,Conversion and Redemption of SharesThe ACD may from time to time impose such restrictions as itmay think necessary to ensure that no Shares are acquired orheld by any person in breach of the law or governmentalregulation (or any interpretation of a law or regulation by acompetent authority) of any country or territory. In thisconnection, the ACD may reject in its discretion anyapplication for the purchase, sale or switching of Shares.

If it comes to the notice of the ACD that any Shares are ormay be owned or held legally or beneficially by a Non-Qualified Person (affected Shares) the ACD may give notice tothe registered holder(s) of the affected Shares requiringeither the transfer of such Shares to a person who is not aNon-Qualified Person or a request in writing for theredemption or cancellation of such Shares in accordance withthe FCA Rules. If any person upon whom such a notice isserved does not, within 30 days after the date of such notice,transfer the affected Shares to a person who is not a Non-Qualified Person or establish to the satisfaction of the ACD(whose judgement is final and binding) that he and thebeneficial owner are not Non-Qualified Persons, he shall bedeemed upon the expiration of that 30 day period to havegiven a request in writing for the redemption or cancellation(at the discretion of the ACD) of all the affected Sharespursuant to the FCA Rules.

A person who becomes aware that he has acquired or holdsaffected Shares as described above shall forthwith, unless hehas already received a notice from the ACD as above, eithertransfer the affected Shares to a person qualified to ownthem or give a request in writing for the redemption orcancellation of such Shares pursuant to the FCA Rules.

The ACD may also, at its discretion, convert holdings of oneclass of Shares to another where it believes this to be in thebest interests of investors. Such circumstances may includewhere the conversion will offer investors the benefits ofeconomies of scale, or will otherwise result in lower fees. Amandatory conversion of Shares shall only take place wherethe ACD has given appropriate prior notice to affectedinvestors in accordance with COLL.

Shareholders subject to UK tax should note that conversionsshould not generally be treated as a disposal for thepurposes of capital gains tax, other than for conversionsbetween hedged and unhedged Share Classes, or vice versa.

The ACD will not apply any fees where it carries out acompulsory conversion of Shares.

Non-UK InvestorsThe distribution of this Prospectus and the offering orpurchase of Shares in any of the Funds may be restricted incertain jurisdictions. No persons receiving a copy of thisProspectus in any such jurisdiction may treat this Prospectusas constituting an invitation to them to subscribe for Sharesunless, in the relevant jurisdiction, such an invitation couldlawfully be made to them. Accordingly this Prospectus doesnot constitute an offer or solicitation by anyone in anyjurisdiction in which such offer or solicitation is not lawful orin which the person making such offer or solicitation is notqualified to do so or to anyone to whom it is unlawful tomake such offer or solicitation. It is the responsibility of anypersons in possession of this Prospectus and any personswishing to apply for Shares in any of the Funds to informthemselves of and to observe all applicable laws andregulations of any relevant jurisdiction. Prospectiveapplicants for Shares in any of the Funds should informthemselves as to legal requirements of so applying and anyapplicable exchange control regulations and taxes in thecountries of their respective citizenship, residence ordomicile.

The Shares in the Funds which are described in thisProspectus have not been and will not be registered underthe United States Securities Act of 1933 (the Securities Act),the United States Investment Company Act of 1940 asamended (the Investment Company Act) or under thesecurities laws of any state of the US of America and may beoffered, sold or otherwise transferred only in compliance withthe Securities Act and such state or other securities laws. TheShares in the Funds which are described in this Prospectusmay not be offered or sold to or for the account of any USPerson.

If you are in any doubt as to your status, you should consultyour financial or other professional adviser.

Annual ReportsFollowing the removal of the requirement to produce shortreports by the FCA, the ACD no longer produces short reportsfor half-yearly and annual accounting periods ending after 1January 2017.

The ACD will, within four months after the end of each annualaccounting period and two months after the end of each half-yearly accounting period respectively, make available fullreport and accounts, free of charge, on request (See“Documents of the Company” below) or online atwww.schroders.co.uk.

Strategy for the Exercise of VotingRightsThe Investment Advisers and the ACD have a strategy fordetermining how voting rights attached to the ownership ofthe Scheme Property are to be exercised for the benefit ofeach Fund. A summary of this strategy is available from theACD on request. Details of action taken in respect of theexercise of voting rights are available from the ACD uponrequest.

http://www.schroders.co.uk


Best ExecutionThe ACD's order execution policy sets out the basis uponwhich the ACD will effect transactions and place orders inrelation to the Funds whilst complying with its obligationunder the FCA Handbook to obtain the best possible resultfor the ACD on behalf of each Fund. Further details of theACD’s best execution policy are available on request from theACD.

Shareholder Meeting and Voting RightsAnnual General Meeting

The ACD gave notice to Shareholders on 31 August 2005 of adecision by its Directors to dispense with the AGM of theCompany. The Company therefore did not hold an AGM inrelation to the Company’s 2005 year-end nor has it held anAGM in subsequent years. It will not hold a further AGMunless the ACD notifies Shareholders of its intention toconvene an AGM.

Shareholders have the right to request copies of the ACD’sservice contracts.

General Meetings

Notice of the date, place and time of general meetings will begiven to Shareholders.

The convening and conduct of Shareholders’ meetings andthe voting rights of Shareholders at those meetings aregoverned by the Company’s Instrument of Incorporation andthe FCA Rules, which are summarised below.

Where Shareholders are corporations rather than individuals,the following will apply:-

(A) Any corporation which is a Shareholder may byresolution of its Directors or other governing body and inrespect of any Share or Shares of which it is the holderauthorise such individual as it thinks fit to act as itsrepresentative at any general meeting of theShareholders or of any Class meeting or Fund meeting.The individual so authorised shall be entitled to exercisethe same powers on behalf of such corporation as thecorporation could exercise in respect of such Share orShares if it were an individual Shareholder.

(B) Any corporation which is a Director of the Company mayby resolution of its directors or other governing bodyauthorise such individual as it thinks fit to act as itsrepresentative at any general meeting of theShareholders, or of any Class meeting or Fund meetingor at any meeting of the Directors. The person soauthorised shall be entitled to exercise the same powersat such meeting on behalf of such corporation as thecorporation could exercise if it were an individualDirector.

(C) A corporation which holds Shares as nominee mayappoint more than one such representative, each inrespect of a specified number of Shares which thecorporation holds, and each such representative shall beentitled to exercise such powers aforesaid only in respectof the Shares concerned.

Requisitions of Meetings

The ACD may convene a general meeting at any time.

Shareholders may also requisition a general meeting. Arequisition by Shareholders must state the objects of themeeting, be dated and signed by the Shareholders who, atthe date of the requisition, are registered as holding not lessthan one-tenth in value of all Shares then in issue. The ACDmust convene a general meeting no later than eight weeksafter the receipt of such a requisition at the head office of theCompany.

Notice and Quorum

Shareholders will receive at least 14 days’ written notice of ageneral meeting. They are entitled to be counted in thequorum and to vote at a meeting either in person or byproxy. The quorum for a meeting is two Shareholders,present in person or by proxy.

Notice convening a general meeting of Shareholders will begiven in accordance with the Regulations.

An instrument of proxy may be in the usual common form orin any other form which the ACD shall approve executedunder the hand of the appointor or of his attorney dulyauthorised in writing or, if the appointor is a corporation,either under the common seal or under the hand of anofficer or attorney so authorised. A person appointed to actas a proxy need not be a holder. For the appointment of aproxy to be effective, the instrument of proxy must bereceived as provided pursuant to the FCA Rules not less than48 hours before the relevant meeting or adjourned meeting.

Voting Rights

At a meeting of Shareholders, on a show of hands everyShareholder who (being an individual) is present in person or(being a corporation) is present by its properly authorisedrepresentative shall have one vote.

On a poll vote, Shareholders may vote in person or by proxy.The voting rights attaching to each Share are such proportionof the voting rights attached to all Shares in issue that theprice of the Share bears to the aggregate prices(s) of all theShares in issue on the date seven days before the notice ofmeeting is deemed to have been served. Shareholders whoare entitled to more than one vote need not, if they vote, useall of their votes or cast all the votes used in the same way.

Except where the FCA Rules or the Instrument ofIncorporation of the Company require an extraordinaryresolution (which needs 75% of the votes cast at the meetingto be in favour if the resolution is to be passed), anyresolution required by the FCA Rules will be passed by asimple majority of the votes validly cast for and against theresolution (an ordinary resolution).

The ACD may not be counted in the quorum for a generalmeeting, and neither the ACD nor any associate of the ACD isentitled to vote at any general meeting except in respect ofShares which the ACD or associate holds on behalf of orjointly with a person who, if the registered Shareholder,would be entitled to vote and from whom the ACD orassociate has received voting instructions.

“Shareholders” in this context means Shareholders on thedate seven days before the notice of meeting is deemed tohave been served, but excluding persons who are known tothe ACD not to be Shareholders at the time of the meeting.

Class Meetings

The above provisions apply to meetings of Shareholders of aFund or Class as they apply to general meetings ofShareholders, but by reference to the Fund or Classconcerned.


Variation of Class Rights

The rights attached to a Class of Share or a Fund may not bevaried without the sanction of an ordinary resolution passedat a meeting of the Shareholders of that Class or a Fund.

Notifications of Changes to the Companyand/or a FundThe ACD will notify all Shareholders of the Company and/orthe relevant Fund, as applicable, of any changes to theCompany and/or a Fund. The nature of the notice given toShareholders by the ACD will depend on the nature of thechanges proposed, as deemed by the ACD. Changes may befundamental, significant or notifiable.

Where the ACD deems changes to the Company and/or therelevant Fund to be fundamental, Shareholders of theCompany and/or the relevant Fund, as applicable, will berequired to approve the change by way of an extraordinaryresolution prior to implementation.

Where the ACD deems changes to the Company and/or therelevant Fund to be significant, Shareholders of the Companyand/or the relevant Fund, as applicable, will be provided withat least 60 days’ prior notice before implementation of thechange.

Where the ACD deems changes to the Company and/or therelevant Fund to be notifiable, Shareholders of the Companyand/or the relevant Fund, as applicable, will be informed at orafter the date the implementation of the change.

Winding Up of the Company or a FundThe Company may not be wound up except as anunregistered company under part V of the Insolvency Act1986 or, if the Company is solvent, under the FCA Rules. AFund may be terminated under the FCA Rules provided it issolvent, or if insolvent wound up under part V of theInsolvency Act 1986 (as an unregistered company).

Where the Company is to be wound up or a Fund is to beterminated under the FCA Rules, such winding up ortermination may only be commenced following approval bythe FCA. The FCA will only give approval if the ACD provides astatement (following an investigation into the affairs,business and property of the Company, or in the case of thetermination of a Fund, the affairs, business and property ofthe Fund) either that the Company or the Fund, as the casemay be, will be able to meet its liabilities within 12 months ofthe date of the statement or that the Company will be unableto do so. The Company may not be wound up or a Fundterminated under the FCA Rules if there is a vacancy in theposition of authorised corporate director at the relevant time.

The Company may be wound up or a Fund terminated underthe FCA Rules if:-

(A) an extraordinary resolution to that effect is passed by theShareholders; or

(B) the period (if any) fixed for the duration of the Companyor the Fund by the Instrument of Incorporation of theCompany expires, or an event (if any) occurs on theoccurrence of which the Instrument of Incorporationprovides that the Company or Fund is to be wound up orterminated (for example, if the share capital of theCompany is below its prescribed minimum or (in relationto any Fund) if the Net Asset Value of the Fund is lessthan £5 million or the equivalent in the currency of

denomination, or if a change in the laws or regulations ofany country means that, in the ACD’s opinion, it isdesirable to terminate the Fund); or

(C) on the effective date of an agreement by the FCA inresponse to a request by the ACD for the winding up ofthe Company or the termination of a Fund.

A Fund may also be terminated in accordance with the termsof a scheme of amalgamation or reconstruction, in whichcase Shareholders in the Fund will become entitled to receiveshares or units in another regulated collective investmentscheme in exchange for their Shares in the Fund.

On the occurrence of any of the events in paragraphs (A) to(C) above and provided the FCA has given its approval:-

(A) Sections 6.2 (Dealing), 6.3 (Valuation and Pricing) and 5(Investment and borrowing Powers) of the FCA Rules willcease to apply to the Company or the Fund;

(B) the Company will cease to issue and cancel Shares in theCompany or the Fund, and the ACD shall cease to sell orredeem Shares or arrange for the Company to issue orcancel them (except in respect of a final cancellation);

(C) no transfer of a Share shall be registered and no otherchange to the Register shall be made without thesanction of the ACD;

(D) where the Company is being wound up, the Companyshall cease to carry on its business except for itsbeneficial winding up; and

(E) the corporate status and powers of the Company and,subject to the provisions of paragraph (A) and (D) above,the powers of the ACD shall remain until the Company isdissolved.

The ACD shall, as soon as practicable after the winding up ortermination has commenced causes the scheme property tobe realised and the liabilities of the Company or Fund to bemet out of the proceeds. Where sufficient liquid funds areavailable after making provision for the expenses of thewinding up or termination and the discharge of theCompany’s or the Fund’s remaining liabilities, the ACD mayarrange for the Depositary to make one or more interimdistributions out of the proceeds to Shareholdersproportionately to the rights of their Shares to participate inthe scheme property at the commencement of the windingup or termination. The ACD shall arrange for the Depositaryto make a final distribution to Shareholders, on or prior tothe date on which the final account or termination account issent to Shareholders, of any balance remaining in proportionto their holdings in the Company or the particular Fund.

On completion of a winding up of the Company or thetermination of a Fund, the Company or the Fund will bedissolved and the ACD will arrange for the Depositary to payor lodge any money standing to the account of the Companyor the Fund in accordance with the OEIC Regulations andwithin one month of dissolution.

The ACD shall notify the FCA that it has completed a windingup of the Company or a termination of a Fund.

Following the completion of a winding up of the Company orof a Fund, the ACD must prepare a final account showing thedate on which the Company’s affairs were fully wound up,how the winding up took place and how the Scheme Propertywas distributed. The auditors of the Company shall make areport in respect of the final account, stating their opinion asto whether the final account has been properly prepared.


Following the completion of a the termination of a Fund, theACD must prepare a termination account showing the dateon which the Fund’s affairs were fully terminated, how thewinding up took place and how the Scheme Property wasdistributed. The auditors of the Company shall make a reportin respect of the final account or termination account, statingtheir opinion as to whether the final account or terminationaccount has been properly prepared.

This final account or termination account and the auditors’report must be sent to the FCA, to each relevant Shareholderwithin four months of the date of the completion of thewinding up of the Company or the termination of the Fund.

In the period between the commencement of the winding upof a Fund and its termination additional monies due to theFund may occasionally be received. If in the opinion of theACD and the Depositary the amount received is consideredsignificant (greater than £5 per Shareholder) relative to thecost of paying the money to Shareholders who held Shares atthe commencement of the Fund’s winding up, the money willbe paid to Shareholders. If the sum received is deemedinsignificant or is received after termination, the money willbe donated to a UK registered charity selected by the ACD.

The Company is an umbrella company, and its Funds aresegregated portfolios of assets. Accordingly, the assets of aFund belong exclusively to that Fund and shall be used todischarge directly or indirectly the liabilities of, or claimsagainst, any other person or body, including the umbrellacompany, or any other Fund, and shall not be available forany such purpose.

While the provisions of the OEIC Regulations provide forsegregated liability between Funds, the concept ofsegregated liability is relatively new. Accordingly, whereclaims are brought by local creditors in foreign courts orunder foreign law contracts, it is not yet known how thoseforeign courts will react to regulations 11A and 11B of theOEIC Regulations.

Documents of the CompanyThe following documents may be inspected free of chargebetween 9.00 a.m. and 5.30 p.m. on every Business Day at thehead office of the ACD, 1 London Wall Place, London EC2Y5AU.

(A) the most recent annual and half-yearly report andaccounts of the Company;

(B) the Instrument of Incorporation (and any amendinginstrument);

(C) the Prospectus;

(D) the Key Investor Information Document for each ShareClass of each Fund; and

(E) the material contracts referred to below.

Copies of the documents referred to at (a), (b) and (c) abovemay also be obtained from the head office of the ACD or maybe downloaded from the ACD’s website: www.schroders.co.uk. The ACD may make a charge at its discretion forproviding printed copies of documents.

Material ContractsThe following contracts, not being contracts entered into inthe ordinary course of business, have been entered into bythe Company and are, or may be, material:

(A) the ACD Agreement dated 24 March 2014 between theCompany and the ACD; and

(B) the Depositary Agreement dated 24 March 2014 betweenthe Company, the ACD and the Depositary.

Details of the above contracts are given in Appendix IV(Management, Distribution and Administration).

ComplaintsComplaints should be addressed to Head of InvestorServices, Schroders, P O Box 1102, Chelmsford CM99 2XX. Youcan request a copy of the ACD’s written internal complaintsprocedures by writing to the above address or contactSchroders Investor Services on 0800 718 777. You may alsohave the right to refer the complaint directly to the FinancialOmbudsman Service, Exchange Tower, London, E14 9SR.Information about the Financial Ombudsman Service can befound at www.financial-ombudsman.org.uk. A statement ofyour rights to compensation in the event of Schroders beingunable to meet its liabilities to you is available from the FCAand the Financial Services Compensation Scheme. Furtherdetails can be found at www.fscs.org.uk.

Data ProtectionFor the purposes of the General Data Protection Regulation2016/679 (GDPR), or the statutory equivalent thereof whichforms part of English law by virtue of the EUWA, (asapplicable) the data controllers in relation to any personaldata you supply are the Funds and the ACD.

In order to comply with our obligations and responsibilitiesunder applicable data protection law, we are required by lawto make available to you a privacy policy which details howwe collect, use, disclose, transfer, and store your information.Please find a copy of our privacy policy at www.schroders.com/en/privacy-policy. By signing the application form, youacknowledge that you have read and understood thecontents of our privacy policy.

Genuine Diversity of OwnershipConditionInterests in the Funds are widely available, and the ACDundertakes that they will be marketed and made availablesufficiently widely and in a manner appropriate to reach theintended categories of Shareholders who meet the broadrequirements for investment in any given Share class, andare not intended to be limited to particular investors ornarrowly-defined groups of investor. Please refer to AppendixIII for the details of the minimum levels of investment and/orinvestor categories that are specified as eligible to acquireparticular Share classes.

Provided that a person meets the broad requirements forinvestment in any given Share class, he/she may obtaininformation on and acquire the relevant Shares in the Fund,subject to the paragraphs immediately following.

Notice To ShareholdersA notice is duly served if it is delivered to the Shareholder’saddress as appearing in the register or is delivered byelectronic means in accordance with the FCA Rules. Anynotice or document served by post is deemed to have beenserved on the second Business Day following the day onwhich it is posted. Any document left at a registered addressor delivered other than by post is deemed to have beenserved on that day.


Acceptable Minor Non-MonetaryBenefitsSchroders may pay to or accept from third parties minor non-monetary benefits as permitted by the FCA Conduct ofBusiness Sourcebook provided that they are capable ofenhancing services provided to clients and do not impairSchroders’ duty to act honestly, fairly and in the bestinterests of clients. Such minor non-monetary benefits mayinclude:

– information or documentation relating to financialinstruments or investment services;

– written material from third parties;

– participation in conferences, seminars and other trainingevents;

– reasonable de minimis hospitality; and/or

– research.

Benchmark RegulationUnless otherwise disclosed in this Prospectus, the indices orbenchmarks used within the meaning of the Regulation (EU)2016/1011 or the statutory equivalent thereof which formspart of English law by virtue of the EUWA, (as applicable) (the“Benchmark Regulations”) by the Funds are, as at the date ofthis Prospectus, provided by benchmark administrators whobenefit from the transitional arrangements afforded underthe applicable Benchmark Regulations and accordingly maynot appear yet on the register of administrators andbenchmarks maintained by the relevant supervisoryauthority. These benchmark administrators should apply forauthorisation or registration as an administrator underapplicable Benchmark Regulations before 1 January 2020.Updated information on this register should be available nolater than 1 January 2020. The ACD maintains written planssetting out the actions that will be taken in the event of thebenchmark materially changing or ceasing to be provided.Copies of a description of these plans are available uponrequest and free of charge from the registered office of theACD.


Appendix VIFundsThe ACD is also the manager of the following authorised unittrust schemes:

– Schroder Absolute Return Bond Fund

– Schroder Advanced Beta Global Corporate Bond Fund

– Schroder Advanced Beta Global Equity Small and Mid CapFund

– Schroder Advanced Beta Global Equity Value Fund

– Schroder Advanced Beta Global Sovereign Bond Fund

– Schroder Advanced Beta UK Equity Fund

– Schroder All Maturities Corporate Bond Fund

– Schroder All Maturities Index Linked Bond Fund

– Schroder Asian Alpha Plus

– Schroder Asian Income Fund

– Schroder Asian Income Maximiser

– Schroder Diversified Growth Fund

– Schroder Dynamic Multi Asset Fund

– Schroder European Alpha Plus Fund

– Schroder European Fund

– Schroder European Smaller Companies Fund

– Schroder Flexible Retirement Fund

– Schroder Gilt and Fixed Interest Fund

– Schroder Global Emerging Markets Fund

– Schroder Global Equity Fund

– Schroder Global Equity Income Fund

– Schroder Global Healthcare Fund

– Schroder Global Multi-Factor Equity Fund

– Schroder Global Cities Real Estate Income

– Schroder Global Cities Real Estate

– Schroder Income Fund

– Schroder Income Maximiser

– Schroder Institutional Growth Fund

– Schroder Institutional Pacific Fund

– Schroder Institutional UK Smaller Companies Fund

– Schroder Long Dated Corporate Bond Fund

– Schroder Managed Balanced Fund

– Schroder Monthly Income Fund

– Schroder Moorgate I Fund

– Schroder Managed Wealth Portfolio

– Schroder MM Diversity Fund

– Schroder MM Diversity Balanced Fund

– Schroder MM Diversity Income Fund

– Schroder MM Diversity Tactical Fund

– Schroder MM International Fund

– Schroder MM UK Growth Fund

– Schroder High Yield Opportunities Fund

– Schroder Prime UK Equity Fund

– Schroder QEP Global Active Value Fund

– Schroder QEP Global Core Fund

– Schroder QEP Global Emerging Markets Fund

– Schroder QEP US Core Fund

– Schroder Recovery Fund

– Schroder Small Cap Discovery Fund

– Schroder Responsible Value UK Equity Fund

– Schroder Sterling Broad Market Bond Fund

– Schroder Strategic Bond Fund

– Schroder Sustainable Multi-Factor Equity Fund

– Schroder Tokyo Fund

– Schroder UK Alpha Plus Fund

– Schroder UK Equity Fund

– Schroder UK Mid 250 Fund

– Schroder UK Real Estate Fund Feeder Trust

– Schroder UK Smaller Companies Fund

– Schroder US Equity Income Maximiser

– Schroder US Mid Cap Fund

– Schroder US Smaller Companies Fund

– SUTL Cazenove GBP Balanced Fund

– SUTL Cazenove GBP Growth Fund

– Anla Fund

– The Blackline Fund

– Bowdon General Fund

– Caversham Fund

– Elystan Fund

– Gresham General Fund


– Pilot Hill Fund

– Start Hill Fund

– Thornton Fund

– Winding Wood Fund

– The Betton Fund

– The Blair Fund

– The Cutty Fund

– The Global Growth Fund

– The Little Acorn Fund

– The Milton Fund

– The Mount Diston Fund

– The Pondtail Fund

– The Second Managed Growth Fund

– The Springfield Trust

– Scriventon Fund

– Evergreen Fund

– Bass Rock Fund

– Broombriggs Fund

– Countess Fund

– Barnegat Light Fund

– Eiger Fund

– Ardnave Fund

The ACD is also ACD for Schroder Absolute Return FundCompany, an open-ended investment company whichcurrently has the following sub-funds:

– Schroder UK Dynamic Absolute Return Fund

– Schroder European Equity Absolute Return Fund

The ACD is also ACD for the following open-ended investmentcompanies:

– The Arcadia Fund

– The Clarkson Fund

– The Wakefield Fund

The ACD is also ACD for Schroder Fusion Investment FundCompany, an open-ended investment company whichcurrently has the following sub-funds:

– Schroder Fusion Portfolio 3





– Schroder Fusion Managed Defensive Fund

The ACD is also ACD for Schroder Dynamic Investment FundCompany, an open-ended investment company whichcurrently has the following sub-funds:

– Schroder Dynamic Planner Portfolio 3





The ACD is also the Manager of SUTL Cazenove Charity UCITSFund which currently has the following sub-trusts:

– SUTL Cazenove Charity Equity Income Fund

– SUTL Cazenove Charity Equity Value Fund

– SUTL Cazenove Charity Bond Fund

The ACD is also the Manager of SUTL Cazenove Charity Non-UCITS Fund which currently has the following sub-trusts:

– SUTL Cazenove Charity Multi-Asset Fund

– SUTL Cazenove Charity Responsible Multi-Asset Fund


Appendix VIIPast performanceThe historical performance of each Fund is as follows:

Annual performance is shown for A Class Accumulation Shares. If A Class Accumulation Shares have not been issued the shareclass with the highest annual management charge will be shown. Past performance is not necessarily a guide to futureperformance. The value of investments and the income from them can go down as well as up and investors may not get backthe amount originally invested.

2018(%) 2017 (%) 2016 (%) 2015 (%) 2014 (%)

Schroder UKOpportunitiesFund

-16.1 15.2 6.9 0.5 -8.6

Schroder UKDynamic SmallerCompanies Fund

-12.4 24.8 11.2 12.9 -8.8

Schroder SterlingCorporate BondFund

-2.1 7.9 10.3 -1.6 10.0

SchroderEuropeanRecovery Fund

-13.2 15.0 10.8 9.3 -2.0

Schroder Core UKEquity Fund

-11.2 8.5 16.7 -5.4 -7.0

Schroder UKAlpha IncomeFund

-16.3 11.7 6.7 4.3 1.2

Schroder StrategicCredit Fund

-1.9 4.1 4.9 1.9 1.8

SchroderEuropean AlphaIncome Fund

-16.9 15.4 23.1 12.2 -0.2

Schroder GlobalRecovery Fund

-8.1 10.9 37.1 - - -

Schroder Multi-Asset Total ReturnFund

-7.0 - - - - -

Schroder IndiaEquity Fund

- - - - - -


Appendix VIIIOther InformationList of the third party delegates appointed by the Depositary – as 1 February 2017

Please note that from 1 July 2017 J.P. Morgan Bank Luxembourg S.A. is an intermediary sub custodian between JPMorganChase Bank N.A. and JPMorgan Chase Bank N.A. Mumbai Branch as Indian sub custodian.

MARKET SUBCUSTODIAN CASH CORRESPONDENT BANK

ARGENTINA HSBC Bank Argentina S.A.Avenida Martin Garcia 464, 5th FloorC1268ABN Buenos Aires ARGENTINA

HSBC Bank Argentina S.A.Buenos Aires

AUSTRALIA JPMorgan Chase Bank, N.A. **Level 19, 55 Collins StreetMelbourne 3000 AUSTRALIA

Australia and New Zealand Banking Group Ltd.Melbourne

AUSTRIA UniCredit Bank Austria AGJulius Tandler Platz – 3A-1090 Vienna AUSTRIA

J.P. Morgan AG **

Frankfurt am Main

BAHRAIN HSBC Bank Middle East Limited1st Floor, Building No 2505, Road No 2832Al Seef 428BAHRAIN

HSBC Bank Middle East LimitedAl Seef

BANGLADESH Standard Chartered BankPortlink TowerLevel-6, 67 Gulshan AvenueGulshanDhaka -1212BANGLADESH

Standard Chartered BankDhaka

BELGIUM BNP Paribas Securities Services S.C.A.Central Plaza BuildingRue de Loxum, 257th Floor1000 BrusselsBELGIUM

J.P. Morgan AG **

Frankfurt am Main

BERMUDA HSBC Bank Bermuda Limited6 Front StreetHamilton HM 11BERMUDA

HSBC Bank Bermuda LimitedHamilton

BOTSWANA Standard Chartered Bank Botswana Limited5th Floor, Standard HouseP.O. Box 496Queens Road, The MallGaboroneBOTSWANA

Standard Chartered Bank Botswana LimitedGaborone

BRAZIL J.P. Morgan S.A. DTVM **

Av. Brigadeiro Faria Lima, 3729, Floor 06Sao Paulo SP 04538-905BRAZIL

J.P. Morgan S.A. DTVM **

Sao Paulo

BULGARIA Citibank Europe plcSerdika Offices10th Floor48 Sitnyakovo BlvdSofia 1505BULGARIA

ING Bank N.V.Sofia

CANADA Canadian Imperial Bank of CommerceCommerce Court WestSecurity LevelToronto Ontario M5L 1G9CANADA

Royal Bank of Canada155 Wellington Street West, 2nd FloorToronto Ontario M5V 3L3CANADA

Royal Bank of CanadaToronto

** J.P. Morgan affiliate



CHILE Banco Santander ChileBandera 140, Piso 4SantiagoCHILE

Banco Santander ChileSantiago

CHINA A-SHARE HSBC Bank (China) Company Limited33/F, HSBC Building, Shanghai ifc8 Century Avenue, PudongShanghai 200120THE PEOPLE'S REPUBLIC OF CHINA

HSBC Bank (China) Company LimitedShanghai

CHINA B-SHARE HSBC Bank (China) Company Limited33/F, HSBC Building, Shanghai ifc8 Century Avenue, PudongShanghai 200120THE PEOPLE'S REPUBLIC OF CHINA

JPMorgan Chase Bank, N.A. **New York

JPMorgan Chase Bank, N.A. **Hong Kong

CHINA CONNECT JPMorgan Chase Bank, N.A. **48th Floor, One Island East18 Westlands Road, Quarry BayHONG KONG


COLOMBIA Cititrust Colombia S.A.Carrera 9 A # 99-02, 3rd floorBogotaCOLOMBIA

Cititrust Colombia S.A.Bogotá

*COSTA RICA* Banco BCT, S.A.150 Metros Norte de la Catedral MetropolitanaEdificio BCTSan JoseCOSTA RICA

Banco BCT, S.A.San Jose

*RESTRICTED SERVICE ONLY.*

CROATIA Privredna banka Zagreb d.d.Radnicka cesta 5010000 ZagrebCROATIA

Zagrebacka banka d.d.Zagreb

CYPRUS HSBC Bank plc109-111, Messogian Ave.115 26 AthensGREECE

J.P. Morgan AG **

Frankfurt am Main

CZECH REPUBLIC UniCredit Bank Czech Republic and Slovakia, a.sBB Centrum – FILADELFIEZeletavska 1525-1140 92 Prague 1CZECH REPUBLIC

Ceskoslovenska obchodni banka, a.s.Prague

DENMARK Nordea Bank Danmark A/SChristiansbroStrandgade 3P.O. Box 850DK-0900 CopenhagenDENMARK

Nordea Bank Danmark A/SCopenhagen

EGYPT Citibank, N.A.4 Ahmed Pasha StreetGarden CityCairoEGYPT

Citibank, N.A.Cairo

ESTONIA Swedbank ASLiivalaia 815040 TallinnESTONIA

J.P. Morgan AG **

Frankfurt am Main

FINLAND Nordea Bank Finland PlcAleksis Kiven katu 3-5FIN-00020 NORDEA HelsinkiFINLAND

J.P. Morgan AG **

Frankfurt am Main




FRANCE BNP Paribas Securities Services S.C.A.Les Grands Moulins de Pantin9, rue du Debarcadere93500 PantinFRANCE

J.P. Morgan AG **

Frankfurt am Main

GERMANY Deutsche Bank AGAlfred-Herrhausen-Allee 16-24D-65760 EschbornGERMANY

J.P. Morgan AG#. **Taunustor 1 (TaunusTurm)60310 Frankfurt am MainGERMANY# Custodian for local German custody clients only.

J.P. Morgan AG **

Frankfurt am Main

GHANA Standard Chartered Bank Ghana LimitedAccra High StreetP.O. Box 768AccraGHANA

Standard Chartered Bank Ghana LimitedAccra

GREECE HSBC Bank plcMessogion 109-11111526 AthensGREECE

J.P. Morgan AG **

Frankfurt am Main

HONG KONG JPMorgan Chase Bank, N.A. **48th Floor, One Island East18 Westlands Road, Quarry BayHONG KONG


HUNGARY Deutsche Bank AGHold utca 27H-1054 BudapestHUNGARY

ING Bank N.V.Budapest

*ICELAND* Islandsbanki hf.Kirkjusandur 2IS-155 ReykjavikICELAND

Islandsbanki hf.Reykjavik


INDIA JPMorgan Chase Bank, N.A. **6th Floor, Paradigm ‘B’ WingMindspace, Malad (West)Mumbai 400 064INDIA

JPMorgan Chase Bank, N.A. **Mumbai

INDONESIA The Hongkong and Shanghai BankingCorporation LimitedJakarta 12930INDONESIA

The Hongkong and Shanghai BankingCorporation LimitedJakarta

IRELAND JPMorgan Chase Bank, N.A. **25 Bank Street, Canary WharfLondon E14 5JPUNITED KINGDOM

J.P. Morgan AG **

Frankfurt am Main

ISRAEL Bank Leumi le-Israel B.M.35, Yehuda Halevi Street65136 Tel AvivISRAEL

Bank Leumi le-Israel B.M.Tel Aviv

ITALY BNP Paribas Securities Services S.C.A.Via Asperto, 520123 MilanITALY

J.P. Morgan AG **

Frankfurt am Main




JAPAN Mizuho Bank, Ltd.2-15-1, KonanMinato-kuTokyo 108-6009JAPAN

The Bank of Tokyo-Mitsubishi UFJ, Ltd.1-3-2 Nihombashi Hongoku-choChuo-kuTokyo 103-0021JAPAN

JPMorgan Chase Bank, N.A. **Tokyo

JORDAN Standard Chartered BankShmeissani BranchAl-Thaqafa StreetBuilding # 2P.O.BOX 926190AmmanJORDAN

Standard Chartered BankAmman

KAZAKHSTAN JSC Citibank KazakhstanPark Palace, Building A, Floor 241 Kazybek BiAlmaty 050010KAZAKHSTAN

JSC Citibank KazakhstanAlmaty

KENYA Standard Chartered Bank Kenya LimitedChiromo48 Westlands RoadNairobi 00100KENYA

Standard Chartered Bank Kenya LimitedNairobi

KUWAIT HSBC Bank Middle East LimitedKuwait City, Qibla AreaHamad Al-Saqr Street, Kharafi TowerG/1/2 FloorsSafat 13017KUWAIT

HSBC Bank Middle East LimitedSafat

LATVIA Swedbank ASBalasta dambis 1aRiga LV-1048LATVIA

J.P. Morgan AG **

Frankfurt am Main

LEBANON

*SUSPENDED UNTILFURTHER NOTICE.*

HSBC Bank Middle East LimitedHSBC Main BuildingRiad El Solh, P.O. Box 11-13801107-2080 BeirutLEBANON


LITHUANIA AB SEB Bankas12 Gedimino pr.LT 2600 VilniusLITHUANIA

AB SEB BankasVilniusJ.P. Morgan AG **

Frankfurt am Main

LUXEMBOURG BNP Paribas Securities Services S.C.A.33, Rue de GasperichL-5826 HesperangeLUXEMBOURG

J.P. Morgan AG **

Frankfurt am Main

*MALAWI* Standard Bank Limited, Malawi1st Floor Kaomba HouseCnr Glyn Jones Road & Victoria AvenueBlantyreMALAWI

Standard Bank Limited, MalawiBlantyre


MALAYSIA HSBC Bank Malaysia Berhad2 Leboh Ampang12th Floor, South Tower50100 Kuala LumpurMALAYSIA

HSBC Bank Malaysia BerhadKuala Lumpur




MAURITIUS The Hongkong and Shanghai Banking CorporationLimitedHSBC Centre18 CybercityEbeneMAURITIUS

The Hongkong and Shanghai Banking CorporationLimitedEbene

MEXICO Banco Nacional de Mexico, S.A.Act. Roberto Medellin No. 800 3er Piso NorteColonia Santa Fe01210 Mexico, D.F.MEXICO

Banco Santander (Mexico), S.A.Mexico, D.F.

MOROCCO Société Générale Marocaine de Banques55 Boulevard AbdelmoumenCasablanca 20100MOROCCO

Attijariwafa Bank S.A.Casablanca

NAMIBIA Standard Bank Namibia LimitedMutual Platz2nd Floor, Standard Bank CentreCnr. Stroebel and Post StreetsP.O.Box 3327WindhoekNAMIBIA

The Standard Bank of South Africa LimitedJohannesburg

NETHERLANDS BNP Paribas Securities Services S.C.A.Herengracht 5951017 CE AmsterdamNETHERLANDS

J.P. Morgan AG **

Frankfurt am Main

NEW ZEALAND JPMorgan Chase Bank, N.A.**Level 13, 2 Hunter StreetWellington 6011NEW ZEALAND

Westpac Banking CorporationWellington

NIGERIA Stanbic IBTC Bank PlcPlot 1712Idejo StreetVictoria IslandLagosNIGERIA

Stanbic IBTC Bank PlcLagos

NORWAY Nordea Bank Norge ASAEssendropsgate 7PO Box 1166NO-0107 OsloNORWAY

Nordea Bank Norge ASAOslo

OMAN HSBC Bank Oman S.A.O.G.2nd Floor Al KhuwairPO Box 1727 PC 111SeebOMAN

HSBC Bank Oman S.A.O.G.Seeb

PAKISTAN Standard Chartered Bank (Pakistan) LimitedP.O. Box 4896Ismail Ibrahim Chundrigar RoadKarachi 74000PAKISTAN

Standard Chartered Bank (Pakistan) LimitedKarachi

PERU Citibank del Perú S.A.Av. Canaval y Moreryra 480 Piso 4San IsidroLima 27PERU

Citibank del Perú S.A.Lima

PHILIPPINES The Hongkong and Shanghai Banking CorporationLimited7/F HSBC Centre3058 Fifth Avenue WestBonifacio Global City1634 Taguig CityPHILIPPINES

The Hongkong and Shanghai Banking CorporationLimitedTaguig City




POLAND Bank Handlowy w. Warszawie S.A.ul. Senatorska 1600-923 WarsawPOLAND

mBank S.A.Warsaw

PORTUGAL BNP Paribas Securities Services S.C.A.Avenida D.João II, Lote 1.18.01, Bloco B,7º andar1998-028 LisbonPORTUGAL

J.P. Morgan AG **

Frankfurt am Main

QATAR HSBC Bank Middle East Limited2nd Floor, Ali Bin Ali TowerBuilding 150 (Airport Road)PO Box 57DohaQATAR

HSBC Bank Middle East LimitedDoha

ROMANIA Citibank Europe plc145 Calea Victoriei1st District010072 BucharestROMANIA

ING Bank N.V.Bucharest

RUSSIA J.P. Morgan Bank International (Limited LiabilityCompany) **10, Butyrsky ValWhite Square Business CentreFloor 12Moscow 125047RUSSIA


SAUDI ARABIA HSBC Saudi Arabia Limited2/F HSBC BuildingOlaya Road, Al-MuroojRiyadh 11413SAUDI ARABIA

HSBC Saudi Arabia LimitedRiyadh

SERBIA Unicredit Bank Srbija a.d.Rajiceva 27-2911000 BelgradeSERBIA

Unicredit Bank Srbija a.d.Belgrade

SINGAPORE DBS Bank Ltd10 Toh Guan RoadDBS Asia Gateway, Level 04-11 (4B)608838SINGAPORE

Oversea-Chinese Banking CorporationSingapore

SLOVAK REPUBLIC UniCredit Bank Czech Republic and Slovakia, a.s.Sancova 1/ASK-813 33 BratislavaSLOVAK REPUBLIC

J.P. Morgan AG **

Frankfurt am Main

SLOVENIA UniCredit Banka Slovenija d.d.Smartinska 140SI-1000 LjubljanaSLOVENIA

J.P. Morgan AG **

Frankfurt am Main

SOUTH AFRICA FirstRand Bank Limited1 Mezzanine Floor, 3 First Place, Bank CityCnr Simmonds and Jeppe StreetsJohannesburg 2001SOUTH AFRICA

The Standard Bank of South Africa LimitedJohannesburg

SOUTH KOREA Standard Chartered Bank Korea Limited47 Jongro, Jongro-GuSeoul 110-702SOUTH KOREA

Standard Chartered Bank Korea LimitedSeoul

Kookmin Bank Co., Ltd.84, Namdaemun-ro, Jung-guSeoul 100-845SOUTH KOREA

Kookmin Bank Co., Ltd.Seoul




SPAIN Santander Securities Services, S.A.Ciudad Grupo SantanderAvenida de Cantabria, s/nEdificio Ecinar, planta bajaBoadilla del Monte28660 MadridSPAIN

J.P. Morgan AG **

Frankfurt am Main

SRI LANKA The Hongkong and Shanghai Banking CorporationLimited24 Sir Baron Jayatillaka MawathaColombo 1SRI LANKA

The Hongkong and Shanghai Banking CorporationLimitedColombo

SWEDEN Nordea Bank AB (publ)Hamngatan 10SE-105 71 StockholmSWEDEN

Svenska HandelsbankenStockholm

SWITZERLAND UBS Switzerland AG45 Bahnhofstrasse8021 ZurichSWITZERLAND

UBS Switzerland AGZurich

TAIWAN JPMorgan Chase Bank, N.A. **8th Floor, Cathay Xin Yi Trading BuildingNo. 108, Section 5, Xin Yi RoadTaipei 11047TAIWAN

JPMorgan Chase Bank, N.A. **Taipei

*TANZANIA* Stanbic Bank Tanzania LimitedStanbic CentreCorner Kinondoni and A.H.Mwinyi RoadsP.O. Box 72648Dar es SalaamTANZANIA

Stanbic Bank Tanzania LimitedDar es Salaam


THAILAND Standard Chartered Bank (Thai) Public CompanyLimited14th Floor, Zone BSathorn Nakorn Tower90 North Sathorn Road BangrakSilom, BangrakBangkok 10500THAILAND

Standard Chartered Bank (Thai) Public CompanyLimitedBangkok

TUNISIA Banque Internationale Arabe de Tunisie, S.A.70-72 Avenue Habib BourguibaP.O. Box 520Tunis 1000TUNISIA

Banque Internationale Arabe de Tunisie, S.A.Tunis

TURKEY Citibank A.S.Inkilap Mah., Yilmaz PlazaO. Faik Atakan Caddesi No: 334768 Umraniye- IstanbulTURKEY

JPMorgan Chase Bank, N.A. **Istanbul

UGANDA Standard Chartered Bank Uganda Limited5 Speke RoadP.O. Box 7111KampalaUGANDA

Standard Chartered Bank Uganda LimitedKampala

*UKRAINE* PJSC Citibank16-G Dilova Street03150 KievUKRAINE

PJSC CitibankKievJPMorgan Chase Bank, N.A. **New York





UNITED ARAB

EMIRATES - ADX

HSBC Bank Middle East LimitedEmaar Square, Level 4, Building No. 5P.O. Box 502601DubaiUNITED ARAB EMIRATES

The National Bank of Abu DhabiAbu Dhabi

UNITED ARAB

EMIRATES - DFM


The National Bank of Abu DhabiAbu Dhabi

UNITED ARAB

EMIRATES - NASDAQ

DUBAI



UNITED KINGDOM JPMorgan Chase Bank, N.A. **25 Bank Street, Canary WharfLondon E14 5JPUNITED KINGDOM

JPMorgan Chase Bank, N.A. **London

Deutsche Bank AG Depository and Clearing Centre10 Bishops SquareLondon E1 6EGUNITED KINGDOM

Varies by currency

UNITED STATES JPMorgan Chase Bank, N.A. **4 New York PlazaNew York NY 10004UNITED STATES


URUGUAY Banco Itaú Uruguay S.A.Zabala 146311000 MontevideoURUGUAY

Banco Itaú Uruguay S.A.Montevideo

VENEZUELA Citibank, N.A.Avenida CasanovaCentro Comercial El RecreoTorre Norte, Piso 19Caracas 1050VENEZUELA

Citibank, N.A.Caracas

VIETNAM HSBC Bank (Vietnam) Ltd.Centre Point106 Nguyen Van Troi StreetPhu Nhuan DistrictHo Chi Minh CityVIETNAM

HSBC Bank (Vietnam) Ltd.Ho Chi Minh City

*WAEMU - BENIN,BURKINA FASO, GUINEA-BISSAU, IVORY COAST,MALI, NIGER, SENEGAL,TOGO*

Standard Chartered Bank Côte d’Ivoire SA23 Boulevard de la Republique 101 B.P. 1141Abidjan 17IVORY COAST

Standard Chartered Bank Côte d’Ivoire SAAbidjan


ZAMBIA Standard Chartered Bank Zambia PlcStandard Chartered HouseCairo RoadP.O. Box 32238Lusaka 10101ZAMBIA

Standard Chartered Bank Zambia PlcLusaka

*ZIMBABWE* Stanbic Bank Zimbabwe LimitedStanbic Centre, 3rd Floor59 Samora Machel AvenueHarareZIMBABWE

Stanbic Bank Zimbabwe LimitedHarare



Schroder Unit Trusts Limited1 London Wall PlaceLondon EC2Y 5AUAuthorised and regulated bythe Financial Conduct Authority.SIFCO Prospectus GBEN 20 January 2020

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